Drive Business Strategy with Cost Optimization

According to Gartner’s 2018 IT Budget Benchmark for Midsize Enterprises, IT spend represents 3.5% of total business revenue.

“Rather than solely focusing on optimizing those costs, progressive CIOs rethink how technology investments can influence the other 96.5% of spending. CIOs that approach conversations about cost optimization from a strategic investment perspective are better equipped to balance critical business priorities while driving long-term cost savings.”

IT cost optimization isn’t only about cutting costs or identifying new sources of efficiency. It is also about strategic investments oriented around business objectives.

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“Quick-Fix” Cost Management Is Risky Business

In financially unclear times, it is easy for businesses to attempt cost cutting methods that are risky, impulsive and have major potential to reduce capabilities necessary to fuel digital transformation. Instead, companies must consider value and risk when making cost-management decisions, taking a cost optimization approach that aims to deliver long-term value and immediate spend efficiency. Cost optimization often starts as an exercise in cost reduction, and cost pressures endure. When business leaders make uninformed cost management decisions, the business impacts can be negative, and sometimes difficult to recover from.

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