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V-Soft's Corporate Headquarters

101 Bullitt Lane, Suite #205
Louisville, KY 40222

502.425.8425
TOLL FREE: 844.425.8425
FAX: 502.412.5869

Denver, Colorado

6400 South Fiddlers Green Circle Suite #1150
Greenwood Village, CO 80111

TOLL FREE: 844.425.8425

Chicago, Illinois

311 South Wacker Dr. Suite #1710, Chicago, IL 60606

TOLL FREE: 844.425.8425

Madison, Wisconsin

8401 Greenway Boulevard Suite #100
Middleton, WI 53562

TOLL FREE: 844.425.8425

Atlanta, Georgia

1255 Peachtree Parkway Suite #4201
Cumming, GA 30041

TOLL FREE: 844.425.8425

Cincinnati, Ohio

Spectrum Office Tower 11260
Chester Road Suite 350
Cincinnati, OH 45246

Phone: 513.771.0050

Raritan, New Jersey

216 Route 206 Suite 22 Hillsborough Raritan, NJ 08844

Phone: 513.771.0050

Toronto, Canada

1 St. Clair Ave W Suite #902, Toronto, Ontario, M4V 1K6

Phone: 416.663.0900

Hyderabad, India

Incor 9, 3rd Floor, Kavuri Hills
Madhapur, Hyderabad – 500033 India

PHONE: 040-48482789

Bangalore, India

GINSERV, CA Site No 1, HAL
3rd Stage Behind Hotel Leela Palace
Kodihalli, Bangalore - 560008 India

How to Optimize IT Costs During Uncertain Times

How businesses should get to IT cost reduction

The current global business environment is volatile and businesses face some uncertain conditions that push businesses into survival mode. At this juncture, businesses must evaluate processes in all departments and identify anything cost heavy and inefficient. Businesses will fail during this time if they don't optimize legacy processes. An organized approach to IT cost optimization is essential to handling uncertain business conditions.

Understanding the Gravity of IT Cost Optimization

The IT department is not immune to cost cutting during economic uncertainties. And while it should be an annual exercise for CIOs, and CFOs to review cost optimization of processes, it's often not a priority. That's why it's important for tech leaders to understand the value of each piece of infrastructure and know the cost to maintain vs. the consequence of losing that technology. The IT cost reduction process should be dynamic, time sensitive and the decisions made should have a high impact on business survival.

Make IT Changes by Prioritizing Risk

Any IT changes should be made by weighing the total cost of the cut and the impact it has on the business. A general cut the IT budget is a flawed approach to remaining competitive. Reductions that should be considered first should be high cost, low impact tools. While some cuts may provide temporary cash flow relief, they may ultimately create long term negative consequences.

Business leaders should be wary of touching anything with high impact to the company. Consider the negatively effect on asset security, service quality, and organizational agility.

Here are some key points to consider in your IT cost optimization strategy.

  • Understand that IT reductions only offer short-term relief that will cause some business disruption. 
  • Optimization should happen swiftly. Starting with actions that reduce costs with little adverse effects.
  • Keep your technology road map and business objectives in mind.  No there should be little effect on long term goals.
  • Prepare and study IT performance metrics. These should be tightly aligned to business metrics, which will help measure the impact of reduction.

Cut Costs by Outsourcing to a Skilled Retainer Team

Outsourcing IT activities is an efficient method for reducing IT costs while extending capabilities. Especially outsourcing IT infrastructure and application services can bring instant cost savings. Using a retainer team is low risk and an easy way keep IT projects on track even if internal services are reduced. Apart from this, outsourcing can help businesses save their IT investments, capital and operational expenses, preserves cash flow, get access to new talent and skill at lesser costs, increases Time-To-Market (TTM) and decreases Time-To-Delivery (TTD).

Opportunity to Optimize with Automation 

Various research reports state that IT operations are the most expensive and accounts somewhere from 50% to 80% of IT budgets. Most business systems employ a lot of manual and outdated processes that are time consuming, costly, and requires a lot of manual efforts. These ineffective processes especially during uncertain times can overburden businesses. Businesses are preferring automation solutions by AI, RPA, APIs and so on.

Automation can have significant savings in various business operations like IT Service Management, HR , data management, IT infrastructure and operations management, and many more. As a part of IT cost reduction, adopting automation solutions can help businesses get work done effectively at optimized costs, resources, efforts, and time.

While businesses navigate downturns in economy and reduced demand, it's a great time to look at their current processes and see what can be improved to optimize costs and become more efficient. A great technology and IT partner can help businesses get through this process. 

 

Topics: ServiceNow, IT Business management, Business management, IT Cost reduction

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