IT cost cuts may be coming - In fact, 39% of CFOs polled in May said they would cut costs in 4Q22 if high inflation persisted. Here’s 🔟 ways to quickly reduce IT costs: GartnerIT
, VP Analyst at Gartner. “Research shows that organizations that continue to invest strategically in tough times are more likely to emerge as leaders. But sometimes, difficult times demand difficult actions.”
Gartner research shows that while most CFOs have been relying on pricing-focused strategies to offset inflation,if inflation remains persistently high in 4Q22. That will soon turn into explicit demands for rapid cost cutting. “Despite the urgency and pressure, pause and remember that there’s little value in cutting or stopping projects or services where costs have already been spent or incurred,” says Ganly. “Also, you’ll hurt the organization’s ability to ramp up when conditions improve if you cut in areas where you have already invested or are ready to deliver — and in key initiatives that can’t be easily restarted.”Instead, assess your IT cost reduction options with these rules in mind.
have a real cash impact, as opposed to reducing on-premises software licenses or owned assets like hardware. Selling and leasing back assets can provide real cash savings as well.Most organizations don’t cut deeply enough the first time, which means they often need to revisit costs and do it again. This creates a destructive and unproductive cycle of uncertainty, effort and lost productivity.
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