Gartner advises businesses on how to cut costs in recession

Analyst Gartner has identified four discrete levels at which IT organisations can help their businesses optimise business costs in the face of the recession. The...

Analyst Gartner has identified four discrete levels at which IT organisations can help their businesses optimise business costs in the face of the recession.

The analyst recommends that IT managers and the business draw up frameworks to measure business optimisation and the effects on the overall organisation.

The four discrete levels of optimising business costs:

IT procurement - True partnerships with IT suppliers mean that each party benefits in the good times and makes joint sacrifices in times of economic uncertainty. The manner in which IT organisations approach procurement issues will affect how much they can reduce spending to meet business goals.

Cost savings within IT - A priority for many IT organisations will be to identify opportunities to reduce baseline IT costs, not just move them to another budget centre.

Joint business and IT cost savings - Consider that the average IT budget is roughly 3% of revenue, whilst total operating expenses are 80% to 90% of revenue. If the business is looking to reduce costs in 2009, IT managers should try to join IT with the business to reduce costs in business operating expenses.

Enabling innovation and business restructuring - As economic uncertainty passes, cost optimisation will refocus on efforts to implement long-term process improvement and enable business structuring and innovation.

Read more on IT project management

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close