Thursday 21 January 2016

Top 3 Solutions for IT Cost Optimization

All companies after a certain stage seek to achieve cost optimization. It applies to the IT department as well.

But to best achieve cost optimization a company needs to incorporate a few things into their practices.

A hindrance that is oft quoted as one of the main reasons for companies being unable to achieve the desired result is the mindset. A workplace is usually a heterogeneous mix of people from all cultures and individuals. To get this amount of diverse population to think alike when it comes to IT Cost Optimization is a hurdle that is not easy to overcome.

Managing better cost optimization requires IT transparency practices that are mature.
Performing an IT Audit will reveal loopholes in the companies’ practices which can then be plugged. Some suggested solutions that will help companies achieve IT cost optimization.   

Agility – An organization needs to remain agile to adapt quickly to internal changes as well as external conditions.   
Technology is purchased on long-term contracts that are abiding and companies need to understand how to structure these so as to achieve cost optimization through balancing per unit cost.

Accountability – Companies are required to remain proactive to understand how to balance the demand and supply of IT. Taking accountability of the optimization issue, if managers can track usage patterns and influence the demand side of IT, they can perhaps with a certain amount of precision predict correctly the amount of IT required and ask for supply accordingly.

Simplification – Reducing the complexity in IT systems can help achieve cost optimization. But simplification is one area that is never really well addressed fully. Business processes, practices, leadership, etc. the variables are too many and make it difficult to achieve.

An IT Audit will serve well to reveal facts that can help you optimize.

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