23 Quick Wins to Optimize IT Costs

IT Quick Wins | Binary Tree

The scenario: You’ve just come on as CIO for your organization. One of the first things that you need to do is establish your credibility and build goodwill with people like your CFO and the business units you’ll be working with. So this is a great time to focus on quick wins. These are places where you can save money quick—without spending much to get there.

Here are some ideas for places you can look to cut right out of the gate. And these are roughly in order by what it might make sense to tackle first.

Tighten up your vendors and suppliers

  • Renegotiate contracts, with an eye toward lower rates or less support
  • Stop paying vendors who aren’t performing well
  • Merge vendors and contracts where possible
  • Do a sale and leaseback of IT assets

Streamline I&O, applications, and software support

  • Look for places to consolidate and centralize I&O activities
  • Cancel all non-essential maintenance
  • Defer all non-critical software updates
  • Push back on or stop any new features or application development
  • Reduce the service level of your application support

Use the cloud

  • Move on-premises applications to the cloud
  • Use cloud for peak consumption, rather than keeping unused capacity to cover

Also see our previous post of 24 tips to control costs in Azure.

Be transparent

  • Delay benefits rationalization and collect promises from recent projects
  • Plan a sustainable strategy to restructure and lower IT operating costs
  • Understand IT costs and key cost drivers (starting with supply side and then IT demand)

Prune your staff

  • Release temporary or contract staff
  • Freeze hiring and leave full-time vacancies open for as long as possible
  • Think about moving some of your full-time people into the business units they work with

Streamline your budget

  • Categorize your budget using zero-based budget categories
  • Hold off on all asset refreshes and change depreciation policies
  • Freeze discretionary spending
  • Freeze travel and similar spending
  • Freeze or stop all new project spending
  • Recategorize “change the business” demand to “run the business” demand

Source: Gartner. 2018 CIO Agenda: A U.S. Perspective. March 2018.

 

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