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IT cost reduction

How low can you go?

70% of FTSE 350 companies are either running or planning a cost reduction programme, and as IT can constitute up to 20% of an enterprise’s cost base, it is an obvious target. However, most IT cost reduction programmes lack ambition - two-thirds were only aiming for single-digit cost savings.  

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.  Worse still, such “slash and burn” activities can reduce IT's ability to support new business demands. 

Clearly, a new approach is needed. Our IT cost reduction methodology has delivered substantial results to many clients - we delivered cost savings of £132 million for a UK insurer and have identified annualised cost savings of £250 million for a major telecoms provider - and the financial baselines we establish ensure that the benefits are recognised not only by our clients, but by their auditors and stakeholders. 

Our approach 

We believe that long-term, sustainable benefits are only achieved by applying a robust cost reduction approach that creates a low-cost IT model while balancing the need to deliver value to the business. Our successes in IT cost reduction span an impressive and diverse range of global enterprises and our breadth of capabilities ensures that, whether you are a CIO seeking to optimise your delivery or a COO/CFO concerned about your cost base, we understand your perspective. 

To every cost reduction programme, we bring;

  • Our deep understanding of your industry
  • A rigorous and tested approach that has stood up to the challenge of executives
  • A portfolio of realisable initiatives based upon real experience and aligned with your business strategy
  • Enduring cost management and benefits management mechanisms

Why Deloitte?

  • Vendor independence - we are an objective client-side advisor, and always act in your best interests.
  • Our ability to deliver as well as to advise. We stand by our recommendations as we are frequently asked to implement them.
  • Depth and breadth of technical knowledge across all aspects of IT: infrastructure, operations, development, integration, architecture, business intelligence, procurement and finance.
  • Our focus is on cost optimisation, not “slash and burn”. Cost reduction is an opportunity to build value, not destroy it.
  • Deloitte brings together unique expertise across consulting, tax, audit and corporate finance – we drive savings beyond the obvious IT costs.

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