Cracking the Whip On IT Spending
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Compared with their peers at larger
companies, mid-market CIOs
are under far less pressure to reduce
costs; only a third say their
company's top management believes there is
fat in the IT budget, about half the rate at companies
with revenues of more than $500 million.
Maybe that's why so many of these companies
aren't taking advantage of some of the
best ways to reduce IT costs.
CIOs aiming to reduce costs are more likely
to reduce spending on services than on any
other item in the IT budget. But they might
save even more by participating in group buying
arrangements, consolidating servers and
storage, or adopting ITIL (IT Infrastructure Library,
which provides smart practices for IT
managers and staff; for more, see go.cioinsight.
com/ITIL), Our study reviews 20 cost management
techniques, technologies and services,
and finds that among mid-tier firms, only four
are more likely to produce large savings. Surprisingly,
such popular cost management approaches
as service level agreements, benchmarking
and chargebacks provide the least
savings.
Finding 1: Modest Cost Pressures for SMB CIOs
Finding 2: Few Mid-Tier Firms Plan to Cut Staff Costs
Finding 3: 20 Ways to Save Money on IT
Next page: Modest Cost Pressures for SMB CIOs
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