Chief Information Technology Officers (CIOs), sit at the center of all C-level executives. They are tasked with playing numerous important roles in any organization, and have to look at a variety of facets that are interlinked with being a C-level executive. One of the roles that they play is to ensure that their department sticks to the finances provided. CIOs have to balance the technology needs with the budgets. CIOs all over are being asked to do more with less. Here we focus on some favorite ways smart CIOs cut cost so they can focus on the “more”.
Since they have breathed information technology for much of their lives, most CIOs are not well versed with managing finances. With this limited information, they often tend to make mistakes in cost management, which lead to more bad than good. In light of this, it is important that C-level executives know the right cost cutting techniques.
Here we look at some of the most common cost cutting techniques and try to understand how CIOs can implement them.
Move to Shared Services
Overhead costs incurred in the midst of multiple help desks and support centers can be averted by having a shared service. Try to limit the overheads as much as you can, and keep a check on them for limiting them from growing too much. In the case that they do grow, follow this tip for more instant results.
Try consolidating the client base as much as possible, and expand it further to reap the fruits of your labor. This will generate interesting results for you, and help save costs by decreasing overheads.
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Get a Budget Opinions
You don’t get the hang of finance? No problem, go to someone who does. Obviously a CIO isn’t supposed to be as well versed in numbers as a CFO is supposed to be. So head over to a CFO and ask them for suggestions, rather than playing with your budget to create a feasible situation for yourself.
The CFO within your own organization would be willing to help you and would give you the suggestions you need for following a budget and staying true to it. Believe us when we say that CFOs have years of experience with budgets and sticking to them, so there is a lot that you can gain out of talking with a CFO who knows what he is talking of.
It is always good to have a round-up of the software inventory you have and think of ways to eliminate the resistance that consumers feel towards moving to the alternatives. Eliminate these hindrances and pave way for a situation where there are less people consumed over a software application.
Efficiently using the hardware that you have with you in your premises often sets the precedent in what you want in the future. Set an effective hardware policy and implement it across the department. In this age of cloud, it is important to realize the kind of hardware systems you have. There is always a cost cutting opportunity in the systems you have. Realize this opportunity and cut the cost to the extent where you can proudly work towards achieving other options.
Moreover, always look out for hardware equipment that is of no use to you. See if that hardware equipment can be sold. Do not have anything extra stored within your premises, as that might not only create a mess, but would lose value over time.
With new and better technologies being release over time, get a value on the hardware equipments that are not being used in your office and sell them off. Don’t keep an item for longer than their expected use. Sell them off to make a profit and a fair deal.
Review all the software contracts you have and go over the fees you have set for them. See, if you can reduce the cost and get a good deal out of them. Software subscriptions that are not needed should be scrapped at the earliest, because they don’t seem to be giving any benefit to you or your organization. Get a new plan, if you think that the current one is overly priced or is not bringing any value to your organization.
What is the desired uptime that you should be looking for? Is it 99.9 percent or should you settle for anything less than 99.9999? The table below illustrates the difference between both these figures, and what you should do to address this gap. Don’t leave it hanging.
||Minutes / yr
||Hours / yr
||Days / yr
The difference in SLA between 99.9 and 99.9999 is believed to be around 10 hours. These are 10 hours that you are paying for? How much of your money is going to waste here? Can it be averted? Yes, it can be through the right choices.
Are vendors comfortable with the prices they have set? There are some vendors who might have an exclusive offer for you. You can try your hand at getting that exclusive offer from them. It is time to apply some pressure on the vendor to give you a cost advantage. Look for the best costs and ask for exclusivity, based on what you are looking for. Now is the time to put some pressure on your vendor for better prices.
Paying Over the Limits
Are you as a CIO paying over $200 per hour to any consultancy firm? Some consultancy firms operating at a larger scale tend to deploy employees at extremely high prices. While the first option might be to remove them, you may not really be able to do that. But, you can supplement someone of your own choice within the team for cost savings.
As a CIO, cost savings are also part of what you are doing, so the responsibility of ensuring cost effectiveness also falls on your shoulders. Make sure that you commit no major mistakes, and give the best job possible to save costs and focus on what is important.
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