EDITOR ’ S QUESTION

WALID GOMAA , CEO OMNIX INTERNATIONAL

Following this , they must develop a detailed optimisation strategy with specific initiatives to reduce costs . This must also be accompanied by a list of priorities , a list of cost-saving opportunities , as well as set a timeframe and budget for the implementation .

With the cost optimisation strategy in place , one can implement the initiatives . This may include consolidating infrastructure , optimising software licenses , transforming to the cloud , and evaluating potential outsourcing , managed IT services . CIOs and IT decision makers are also advised to consider cutting-edge tools based on AI and ML that provide better observability of applications and infrastructure dependencies .

It is important to monitor and measure results to ensure that such initiatives are effective . This includes tracking key performance indicators , KPIs such as IT spending , operational efficiency , user satisfaction and very importantly , the sustainability goal of the organisation .

CIOs and IT decision makers must promote a culture of continuous improvement within the IT organisation . They should get employees involved and ask them to identify improvement areas while providing them with the resources needed to make changes . The strategy needs to be agile so that adjustments can be made while evaluating the KPIs to ensure ongoing success .

It is important to monitor and measure results to ensure that such initiatives are effective .

Gartner recommends that organizations take a structured and programmatic approach to cost management . Research shows that organizations that continue to invest strategically in tough times are more likely to emerge as leaders . But sometimes , difficult times demand difficult actions .

Gartner research shows that while most CFOs have been relying on pricing-focused strategies to offset inflation , 39 % will zero in on cost cutting if inflation remains persistently high . That will soon turn into explicit demands for rapid cost cutting .

Despite the urgency and pressure , pause and remember that there is little value in cutting or stopping projects or services where costs have already been spent or incurred . Also , you will hurt the organization ’ s ability to ramp up when conditions improve if you cut in areas where you have already invested or are ready to deliver , and in key initiatives that cannot be easily restarted .

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