IT Spend Reduction
IT Cost Management & More
With the increasing reliance on on-demand / cloud software that is purchased directly by business users, it is becoming more difficult to track IT spend across the enterprise. Further, allocating costs by core system for accurate Total Cost of Ownership (TCO) reporting is challenging and typically receives limited attention. Understanding the spend is the first step to reduce it. Depending on the maturity of IT cost management, IT procurement and IT vendor management practices as well as the availability of cost data and analytics some effort is typically always needed to identify, allocate and quantify the spend before it can be targeted for reduction.
The question then becomes: what costs should be cut? A systematic approach is needed to make sure spend reduction targets are aligned with the priorities of the business and are appropriately allocated between new projects to grow and enhance the business vs. keeping the lights on.
With some exceptions, the bigger the IT budget the greater the opportunities to reduce spend. We help larger organizations reduce IT costs. In cases when system proliferation is a significant problem, we may do so in conjunction with a system portfolio rationalization initiative.