According to Gartner, “In an uncertain and pressurized economic environment, organizations often face the challenge of realizing immediate IT cost savings”. As a CFO or Finance Manager, you may be faced with mandatory budget cuts and are struggling to respond promptly and effectively.
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 businesses 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.
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