IT directors can make dramatic savings by focusing on telecommunications costs, according to John Berney, the former IT director of Scottish & Southern Energy.
Most organisations currently spend about 50% too much on mobile telephony and 35% too much on fixed-voice telecommunications, Berney told delegates at last week's CityIT conference.
Telephony is often not centralised within organisations and is often less well managed than other areas of the business. There can be insufficient attention to changing markets and rates, and inadequate control over the use and abuse of phones and the optimum time for different types of calls. That makes it a good starting point to make deeper cuts in IT costs, said Berney.
While at Scottish & Southern Energy, Berney, who was an accountant and finance director before becoming an IT director, reduced IT costs by 70% over three years. In that time, he said, the company assimilated five mergers.