According to Gartner, businesses "face constant pressure to reduce [IT] cost while maintaining or improving performance. This often comes in the form of a direct cost challenge, with a specific target and time frame."
In this report, Gartner discusses how to answer the call of a mandatory IT budget cut to successfully meet the challenge:
- "Define and clarify the scope of the cost-cutting, and the question being asked. Follow a structured approach to answer the cost challenge."
- "Identify and evaluate actionable cost-saving opportunities by creating transparency in the cost base, providing multiple views of the IT budget, where possible."
- "Identify stakeholders and present them with an action plan, including a menu of actionable cost-saving options."
- "Show the business impact of each option by quantifying service degradation or business risk in the action plan. Ensure stakeholders sign up for any negative impacts."
This must-read report can help CIOs and CFOs properly evaluate which costs to cut while maintaining business continuity and performance. Those who follow Gartner’s recommended approach will position their organizations for success.
Reference: Gartner, Inc. "How to Respond to Mandatory IT Budget Cuts." November 18, 2019, Bryan Hayes, Jim McGittigan.
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