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Achieving sustainable IT cost reduction

How low can you go?


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Most IT cost reduction programmes lack ambition. Deloitte’s recent survey of Fortune 500 organisations found that two-thirds of such initiatives aimed only for single digit cost savings.

 

Most IT cost reduction programmes lack ambition. Deloitte’s recent survey of Fortune 500 organisations found that two-thirds of such initiatives aimed only for single digit cost savings. Furthermore, these organisations typically fail to achieve sustainable benefits – only 19% of respondents took measures to ensure that cost savings were maintained in the future.

Current economic conditions intensify the focus on achieving quick wins, often at the expense of implementing longer term initiatives that could deliver much greater savings. This short term focus can also result in unforeseen costs outside IT which reduce or even outweigh the initial savings. Worse still, such ‘slash and burn’ activities can reduce IT’s ability to support new business demands. Coupled with this organisations have placed sustainability at the heart of their strategic objectives and would like to see IT make a significant contribution to these agendas.

For further information, download our report 'Achieving sustainable IT cost reduction'. (PDF, 222 KB)

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