CIOopinion
OPINION
CIO OPINION
“
CUTTING OR
STOPPING PROJECTS OR
SERVICES WHERE COSTS
HAVE ALREADY BEEN
SPENT OR INCURRED ARE
OF LIMITED VALUE.
//////////////////
Chris Ganly, Senior Director Analyst, Gartner
10 ways for CIOs to
quickly reduce IT costs
Chris Ganly, Senior Director
Analyst, Gartner, talks us
through 10 ways CIOs can
quickly reduce their IT costs.
CIOs can follow these 10 rules
when faced with the need to cut
IT budgets quickly.
It’s often said that ‘you can’t cut your
way to growth’ but you can cut your way
to survival. From natural disasters and
terrorist attacks to a tanking economy or
an aggressive new competitor, there are
many reasons why an organisation may
need to make immediate cost savings
simply to stay in business.
Gartner recommends taking a
structured and on-going approach to
cost optimisation. Research shows that
organisations that continue to invest
strategically in tough times are more likely
to emerge as winners. But sometimes,
difficult times call for difficult actions.
“When faced with the challenge of
immediate cost savings, CIOs need to
determine how to approach cost cutting
in the least damaging way to the mid
and long-term health of the business,”
said Chris Ganly, Senior Director Analyst,
Gartner. “Define the consequences and
risks of cutting costs and communicate
them to stakeholders, despite the urgency
and likely short lead time.”
Cutting or stopping projects or services
where costs have already been spent or
incurred are of limited value.
Cutting things that can’t be restarted,
that have already been invested in or
are ready to deliver will hurt when the
organisation is ready to accelerate again.
10 rules for rapid IT cost reduction
Assess your IT cost reduction options with
these rules in mind.
1. Target immediate impact.
Eliminate, reduce or suspend items
that will impact in one, six or even
nine months, not in years. Examples
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