After a couple of years of deep recession, economic pressures are making business leaders reprioritize cost-cutting initiatives to focus on growth and profitability. Although IT investments often represent a small fraction of the corporate cost base, CIOs may have to make deeper cuts while minimizing impact on business value delivery.
Reducing IT costs is no easy solution; it has always been a dilemma for CIOs to cut back their IT spending without hindering the company’s growth potential, and the necessity to improve their management strategies without sacrificing the technology they need is crucial.
Benchmarking is gaining special prominence in the wake of cost-saving pressures, yet most organizations are still reluctant to undergo the discipline involved in cutting costs. Too hesitant in facing change, they rely on short-term cost cutting. They prefer to contain expenditure, rather than cut costs by discovering and eliminating inefficient ways of working. By not remedying inefficiencies, a negative impact on service performance may occur and lead to more revenue loss than money saved.
Establishing a fact-based approach to match IT metrics with business measures can be achieved through benchmarking. CIO’s can use business-focused IT reports to set the stage for longer-term cost optimization, making the right budget cuts based not only on cost alone, but in the context of performance and quality.
Analyzing the business impact of technology usage is crucial in making prudent decisions on reducing costs and achieving greater ROI. Utilizing IT reports provides not only a more structural approach to cost management but can help IT leaders establish stronger business ties and to improve overall operations throughout the enterprise.
Learn more about license management and IT metering tools, in order to reduce IT costs more effectively. Optimize your software and hardware assets with Open iT. Schedule a free demo today!