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Home / IT Blogs / Strategic IT Cost Transformation: Here’s How You Can Optimize IT Costs in the Long Run
April 20, 2021 - by Synoptek
The COVID-19 pandemic has impacted enterprises in ways no one ever imagined! In addition to shutting down business units, closing doors on certain markets, and losing customers (and employees), most organizations also have had to deal with optimizing IT costs – in order to stay afloat in these turbulent waters. But given the pressure to cut down costs as soon as possible, many are embracing short-term tactics to eliminate wasteful spending. But will such tactics work on the long run?
In order to cope up with the COVID-19 pandemic, many organizations are looking to eliminate unnecessary expenditure; right from getting rid of unused systems and tools to eliminating redundant jobs, not investing in updating or upgrading tools, cutting down on advertising expenditure, etc. Although such pure cost reduction programs implemented in response to the crisis might seem to deliver results in the short run, they for sure will not scale in the long run.
To drive long-term efficiencies and value, organizations will to plan for strategic cost transformation measures; they will have to investing in technology to enable strategic IT cost transformation and scale the business in the new normal. They will need to rethink how they do business as well as focus on robust strategies to eliminate wasteful spending and adjust loss of sales due to pandemic-induced challenges.
CIOs today are exploring various techniques to navigate budget constraints in today’s volatile business environment. But just implementing a handful of cost reduction measures without evaluating IT spending or cost drivers. Without knowing how costs impact delivery of IT services, overall business costs or revenue, they fail to invest in the right cost optimization measures.
When it comes to optimizing IT costs, strategic IT cost transformation will reap far many benefits as compared to short-term IT cost reduction programs. Here’s why:
If you really want to optimize costs successfully and continuously, you need to move away from short-term cost reduction measures and take a long-term cost transformation approach. Here are tips that can help you optimize IT costs and deliver a force multiplier for growth:
Organizations that are looking to emerge victorious from the pandemic have a lot of work to do, especially with respect to IT cost optimization. Since the crisis has made the business landscape extremely unpredictable, to drive long-term efficiencies and value, short-term cost reduction measures won’t be sufficient. To enable true IT cost transformation, they have to assess their existing IT environment, identify areas for optimization, and re-invest into growth services and capabilities to lower cost structure, deliver better customer experiences, and build more trust.
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