Identify Cost Reduction Possibilities

Review each area of IT for cost reduction opportunities. Include the following areas, each of which are covered within various chapters of this book to provide additional guidance and suggestions:
  • Business applications:
    • Application portfolio.
    • Software licenses.
    • Maintenance and support agreements.
    • Software implementations, custom application development, and other application options.
      Top Tip: Logical decisions based on facts

      "IT management must learn and understand the budgeting process for their organization. You must put the impact in business terms. Outline the pros and cons to any potential cuts and identify the risks. Work with the business to make logical decisions based on facts."
      —Bruce McIntosh
      Graco Inc.

  • Technical infrastructure:
    • Database environment.
    • Desktop environment.
    • Server environment.
    • Network environment.
    • Voice and data telecommunications environment.
  • IT processes:
    • Service delivery processes: service level agreement, availability management, capacity management, IT service continuity management, financial management, and security management.
    • Service support processes: service desk function, incident management, problem management, change management, configuration management, and release management.
    • Systems development processes: feasibility, requirements, design, develop/install/integrate, test, validation acceptance, and post-implementation review.
    • Manage resource processes: IT strategic planning, portfolio management and governance, project management, human resources management, data center operations management, facilities management, procurement and vendor management.
    • Manage business relationship processes: understand the business, market IT offerings, satisfaction management, and metrics management.
  • IT organization:
    • Organization structure, roles and responsibilities.
    • Salary planning, bonuses, benefits.
    • Headcount management.
    • Organizational alternatives, management of consultants.
  • Miscellaneous costs:
    • Copiers.
    • Printers.
    • Training.
    • Travel.

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