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How Can IT Reduce Costs While Delivering Transformational Services?

Friday 22 May, 2020

During the Covid-19 pandemic, but also during future disruptions, IT leaders will be expected to cut total costs while also delivering transformational services. How can this be done?

As we have seen by the rapid switch to home working in organisations built for office environments, IT is more front and centre to the success of business than ever before. As business comes to terms with the human and economic costs of Covid-19 and further disruptions to follow (such as Brexit), IT will also be expected to reduce total costs whilst delivering these transformational services and supporting the reduction of business operational costs.  

As Gartner reports in its May 2020 IT spend forecast, there will be an expected decline of 8% in global IT spend, despite large increases in forecast spend on public cloud services, cloud-based telephony & messaging and conferencing services to support the new remote working reality. 

So the task for IT is how to create room in budgets to deliver the unprecedented demand for services and to continue to deliver digital transformation, whilst also dealing with a lower total spend enforced on it by the emerging economic realities.  

More than ever, then, IT needs to consider three core components of cost optimisation: 

 
  1. Understand costs: What does IT cost, and why does it cost what it does?
  2. Identify cost reduction opportunities: To drive immediate spending goals and also protect spend on initiatives required to drive business transformation 
  3. Manage IT as a value-driving entity: To enable IT to continue its development as a business leader 

These steps are set out in our Sustainable Approach to IT Cost Optimisation, and will help the IT organisation develop a value-focused mindset that enables both the quick wins needed for today but also the approaches needed to drive long-term value for the business.

View 'The Sustainable Approach To IT Cost Optimisation' playbook here.

Sustainable Approach to IT Cost Optimisation

Blog by Michael Ward, Coeus Consulting.

Find out more about Coeus Consulting's Commercial Management offering here.