Best Techniques to Manage IT Costs - 'Using ITIL'

By Allan Alter  |  Posted 09-12-2007

Best Techniques to Manage IT Costs

CIO Insight surveyed 255 senior IT executives and managers about the techniques they use to manage IT costs. Here are a dozen techniques ranked in order of their potential savings.

Best Techniques to Manage IT Costs

Best Techniques to Manage IT Costs - 'Negotiating Better Prices from Vendors'

Fifty-five percent of all respondents reported large savings. Thirty-seven percent contended negotiations furnished minimal savings; 3 percent had no plans to use.

Best Techniques to Manage IT Costs - 'Negotiating Better Prices from Vendors'

Best Techniques to Manage IT Costs - 'Standardizing Technologies and Vendors'

Forty-eight percent of companies experienced large savings. Thirty-nine percent saw standardizing offer minimal savings; 11 percent will soon begin to standardize.

Best Techniques to Manage IT Costs - 'Standardizing Technologies and Vendors'

Best Techniques to Manage IT Costs - 'Group Buying with Other Companies'

Twenty-eight percent bought IT wares in groups. Only 11 percent of small firms did so versus 35 percent of midsize and 33 percent of large companies.

Best Techniques to Manage IT Costs - 'Group Buying with Other Companies'

Best Techniques to Manage IT Costs - 'Consolidating Space/Facilities'

Forty-one percent of large companies saved significantly. A mere 19 percent of small firms and 25 percent of midsize companies experienced similar savings.

Best Techniques to Manage IT Costs - 'Consolidating Space/Facilities'

Best Techniques to Manage IT Costs - 'Managing Upgrade Cycles'

Thirty-three percent reported large savings. Ten percent of small firms don't manage upgrade cycles versus 6 percent of midsize and 5 percent of large companies.

Best Techniques to Manage IT Costs - 'Managing Upgrade Cycles'

Best Techniques to Manage IT Costs - 'Improving Internal Spending Decision-Making Process'

Thirty-two percent of big companies saw large savings. Twenty-four percent of midsize and 21 percent of small firms also experienced significant savings.

Best Techniques to Manage IT Costs - 'Improving Internal Spending Decision-Making Process'

Best Techniques to Manage IT Costs - 'Using ITIL'

Ten percent of all companies employed IT Infrastructure Library. Twenty-two percent planned to implement ITIL soon; 52 percent had no plans to do so.

Best Techniques to Manage IT Costs - 'Using ITIL'

Best Techniques to Manage IT Costs - 'Establishing External Service-Level Agreements'

Seventeen percent reported that external agreements produced large savings. Another 39 percent contended savings were minimal, with 52 percent of large companies seeing nominal savings.

Best Techniques to Manage IT Costs - 'Establishing External Service-Level Agreements'

Best Techniques to Manage IT Costs - 'Providing Cost Management Incentives for Managers'

Forty-seven percent of large companies did so. Sixteen percent of big companies realized large savings versus 9 percent of midsize and 6 percent of small firms.

Best Techniques to Manage IT Costs - 'Providing Cost Management Incentives for Managers'

Best Techniques to Manage IT Costs - 'Using Internal Chargebacks'

Forty-nine percent of all respondents did not use this technique. Internal chargebacks or other cost-recovery methods furnished 9 percent with large savings; 29 percent reported minimal savings.

Best Techniques to Manage IT Costs - 'Using Internal Chargebacks'

Best Techniques to Manage IT Costs - 'Training Managers in Cost Management'

Nine percent said training furnished significant savings. Forty-eight percent of big enterprises, 26 percent of midsize companies and 23 percent of small firms realized minimal savings.

Best Techniques to Manage IT Costs - 'Training Managers in Cost Management'

Best Techniques to Manage IT Costs - 'Establishing External Service-Level Agreements'

Seventeen percent saw substantial savings. Thirty-nine percent realized minimal savings while 25 percent have no plans to establish these pacts. Nineteen percent planned establishing these agreements soon.

Best Techniques to Manage IT Costs - 'Establishing External Service-Level Agreements'

Best Techniques to Manage IT Costs - 'The Survey'

Large Company -- Annual Revenue of $1 Billion or More

Midsize Company -- Annual Revenue of $100 million to $999 Million

Small Company -- Annual Revenue of Less than $100 million

The survey was conducted between July 7 and July 24, 2007. Se

Best Techniques to Manage IT Costs - 'The Survey'