Cutting costs and increasing efficiency are paramount as the economy continues to suffer.
7. Defer Projects
For most IT organizations, this is not a realistic alternative. The business that IT supports quite often simply cannot defer projects, as the viability of the overall organization would be in jeopardy if it did. The Triangle of Quality is bounded on three sides by schedule, scope and resources.
By changing any one of the three sides, without a corresponding change to the others, quality is compromised. Reducing the outlay for resources implies that scope and/or schedule need to be changed. While this isn't always possible, a conversation on cost reduction in IT simply cannot be complete without mention of this technique.
8. Renegotiate rates to drive out unnecessary overhead
Talk to your IT services vendor. They are as acutely aware of the current economic environment as you are. Renegotiating rates is not an uncommon occurrence. And for those vendors that do operate in the spirit of partnership with their clients, recognition of this degree of relationship should be realized.
Resistance to reasonable rate reduction in the current economic environment is an illustration of a lack of partnership. Let your IT vendor come up with some creative options for you.
Vendor rates consist of many components. Sometimes they contain small additions related to client management activity. While this is an important task, some organizations do not need that extra layer of non project-oriented vendor expense. Work to negotiate this out.
9. Engage the business side of the house to take on additional testing
Testing is the advocate of the business teams within the IT department. When an organization needs to reduce IT resources, it must cover those tasks somewhere else. In the case of testing, sometimes it can be covered by business analysts. Tabling the discussion on how different business analysts are from testers, there are some instances where the business can take over a small percentage of the testing tasks.
Admittedly, the overall approach to testing would need to change. However this might be a viable cost reduction technique for some organizations.
This article was originally published on 02-09-2009
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