Best Practices in IT Cost Optimization

10

1. Make Cost Optimization an Ongoing Discipline

All too often, IT cost optimization becomes a reactionary impulse rather than an ongoing discipline. Before you even begin developing your strategy, you must commit to making cost optimization a top priority.

2. Achieve Full Transparency

In order to evaluate your budget and spending, you need to consult service-

based data and analytics. With an automated software

solution, you will gain invaluable insight on exactly how much you are spending,

and for what purposes.

Now that you have an in-depth report on your own budget and spending, you should compare your costs and operations with those of other organizations in your industry. Working with a consultant is an excellent way to ensure the accuracy and relevance of key IT metrics.

3. Conduct Benchmarking

4. Align IT Spending & Business Objectives

At this point, you are equipped with vital

information regarding industry trends and your current costs. Now is the time for the CEO, CFO,

and CIO to discuss how to allocate IT funds to achieve particular

business objectives.

5. Hold Every Department Accountable

Gone are the days of impulsively cutting costs on IT based on business demands. With service-based metrics, you will know exactly how each department influences your IT spend – and you will be able to communicate your plans using a common language.

6. Eliminate Unnecessary Spending

When reviewing your data, you may identify certain services that are duplicated or no longer adding value to your organization. Compare your Activity Catalogue to your Service Catalogue, and eliminate any unnecessary spending.

7. Make Strategic Investments

By eliminating unnecessary spending, you will discover more room in your budget to make strategic investments with the funds you have already dedicated to IT. Focus your spending on areas that drive the most revenue for your business.

8. Plan for Innovation

Now that you have begun to make more strategic decisions with your current IT spend, you can plan for innovation. Figure out which new elements you would like to incorporate in your environment.

9. Position for Sustainable Growth

When you no longer have to worry about managing day-to-day tasks, you will be more future oriented. Support long-term growth while operating efficiently on a daily basis.

10. Walk Before You Run

Start the journey and share what you find with your department heads. Make it clear that their departmental requirements drive your IT spend.

Get your house in order one step at a time. Do not try to obtain perfect data on Day 1, as few organizations have all the necessary information immediately.

Better information means better decisions.

For more information, visit clearcost.software