According to Gartner,
“In an uncertain and pressurized economic environment, organizations often face the challenge of realizing immediate IT cost savings. When faced with the challenge, CIOs need to determine how to approach cost cutting in the least damaging way to the medium- and long-term health of the business.”
While IT cost management is a best practice, Gartner has recommendations for how to approach rapid cost cutting when required:
“Establish the cost reduction fundamentals by determining what needs to be considered from a savings and timing perspective.”
“Apply the 10 rules for success. Determine the types of actions, expenses and categories that have the most immediate and/or largest impact.”
“Map and communicate your plan to eliminate, reduce or suspend. Communicate the plan internally to IT, the business units (BUs) impacted and to the CFO/CEO driving the reductions.”
“Define the consequences and risks of cutting costs and how to manage them, despite the urgency and likely short lead time.”
This must-read report can help CIOs thoughtfully cut costs to meet budget goals while managing risk and minimizing longer-term effects. Those who follow Gartner’s recommended approach will position their organizations for success.
Reference: Gartner, Inc. “10 Rules for Rapid IT Spend Reduction.” November 4, 2019.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.