{"id":33615,"date":"2020-03-12T19:31:00","date_gmt":"2020-03-12T23:31:00","guid":{"rendered":"https:\/\/serviceexpress.com\/uk\/resources\/practical-it-cost-containment-strategies\/"},"modified":"2024-10-09T20:38:59","modified_gmt":"2024-10-09T19:38:59","slug":"it-cost-containment-strategies","status":"publish","type":"post","link":"https:\/\/serviceexpress.com\/uk\/resources\/it-cost-containment-strategies\/","title":{"rendered":"Practical IT Cost Containment Strategies"},"content":{"rendered":"\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-margin-bottom-small\">In this article,&nbsp;<strong>CFOs will learn how they can work with IT partners to cut costs quickly in uncertain and challenging times.<\/strong>&nbsp;The following information will help to generate action items for cost containment and highlight key cash conservation ideas including:<\/p>\n\n\n\n<div class=\"wp-block-columns has-margin-bottom-medium is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<ul class=\"wp-block-list\">\n<li><a href=\"\/uk\/resources\/it-cost-containment-strategies\/#communicate-priorities\"><strong>Communicating<\/strong><\/a>&nbsp;priorities and collecting insights from your cost conservation team comprised of allies from finance, IT, leadership and more.<\/li>\n\n\n\n<li><a href=\"\/uk\/resources\/it-cost-containment-strategies\/#prioritizing\"><strong>Prioritising<\/strong><\/a>&nbsp;the needs of your current data centre equipment and reconsidering equipment refresh alternatives to control your CapEx costs.<\/li>\n\n\n\n<li><a href=\"\/uk\/resources\/it-cost-containment-strategies\/#partnering\"><strong>Partnering<\/strong><\/a>&nbsp;with a third-party maintenance provider to reduce your data centre support costs by 50-70%<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"350\" height=\"240\" data-src=\"https:\/\/serviceexpress.com\/uk\/wp-content\/uploads\/sites\/5\/2023\/08\/curb-and-reduce-IT-spending.jpeg\" alt=\"Professionals Meeting at Modern Table\" class=\"wp-image-31910 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 350px; --smush-placeholder-aspect-ratio: 350\/240;\" \/><\/figure>\n<\/div>\n<\/div>\n\n\n\n<p class=\"has-margin-bottom-small\">Confronted with the ongoing impacts of a global pandemic, CFOs are partnering with departments in their organisation to reduce costs and stabilise the health of their business. Industries are facing urgent challenges including revenue loss, supply chain disruptions, staffing reductions and project cancellations. According to a recent\u00a0<a href=\"https:\/\/www.prnewswire.com\/news-releases\/cfos-say-normal-economic-activity-returns-in-the-third-quarter-of-2020-301039045.html?tc=eml_cleartime\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">CFO Research survey<\/a>, 50% of finance executives stated their organisation was \u201cscaling back or delaying investments\u201d.<\/p>\n\n\n\n<p class=\"has-margin-bottom-medium\">Whether your cost containment initiatives are immediate or downstream, you may need to take swift action in response to future cutbacks. Your organisation is depending on key departments to reduce, find efficiencies or freeze spending altogether. Use the following information to fuel your cost containment strategies and improve your company\u2019s liquidity position.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignwide has-margin-bottom-medium is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading has-margin-bottom-small has-large-font-size\" id=\"prioritizing\">Plan &amp; Prioritise Cost Reduction Goals<\/h2>\n\n\n\n<p class=\"has-margin-bottom-medium\">Establishing a starting point for cost containment is a lot easier said than done. It is decidedly more difficult in the face of moving targets and changing conditions. The first step is to begin scenario planning and create a holistic plan to move forward.&nbsp;<strong>Avoid working in a silo<\/strong>&nbsp;by including stakeholders across the business for a better understanding of essential and non-essential projects.<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center has-margin-bottom-zero is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<h3 class=\"wp-block-heading has-margin-bottom-small has-medium-font-size\" id=\"begin-scenario-planning\">\u00bb Begin Scenario Planning<\/h3>\n\n\n\n<p class=\"has-margin-bottom-small\">Use scenario planning to stay ahead of potential revenue changes before they occur. The impacts of an economic downturn may drastically influence the health of your business. With scenario planning, you can develop a toolkit of reductions to improve the company\u2019s bottom line.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<div class=\"wp-block-group has-light-blue-background-color has-background is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center has-margin-bottom-zero\"><a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/de\/Documents\/finance-transformation\/CFO%20Insight-Scenario-Planning.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Deloitte CFO Frank Friedman<\/a>\u00a0<br>shares fundamental questions to ask as you begin the scenario planning process.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading has-margin-bottom-small has-medium-font-size\" id=\"create-a-multi-phased-approach\">\u00bb Create a Multi-Phased Approach<\/h3>\n\n\n\n<p class=\"has-margin-bottom-small\"><a href=\"https:\/\/www.mckinsey.com\/business-functions\/mckinsey-digital\/our-insights\/it-architecture-cutting-costs-and-complexity\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">McKinsey Digital<\/a>\u00a0explains the \u201cthree-phased approach\u201d to cutting costs in IT departments. These phases are meant to guide CFOs and IT leaders along the cost reduction process by starting with \u201csmall\u201d changes and shifting to considerable ones.\u00a0<strong>Depending on your organisation\u2019s architecture and budgeting requirements, these action items may need to be applied at varying intervals.<\/strong>\u00a0Carefully strategising for budget changes helps your department to adjust over time, instead of creating a large reduction of resources all at once.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large has-margin-bottom-medium\"><img decoding=\"async\" width=\"1100\" height=\"595\" data-src=\"https:\/\/serviceexpress.com\/uk\/wp-content\/uploads\/sites\/5\/2023\/08\/three-phased-approach-to-cutting-costs-in-the-data-center.png\" alt=\"Visual on IT Savings by Effort\" class=\"wp-image-31911 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; --smush-placeholder-aspect-ratio: 1100\/595;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"communicate-priorities\">\u00bb Communicate Priorities<\/h3>\n\n\n\n<div class=\"wp-block-columns has-margin-bottom-medium is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p class=\"has-margin-bottom-small\">When there is an outlined action plan, CFOs and IT leaders should get together to review, inform and incorporate relevant feedback from employees before moving forward. To do so,&nbsp;<strong>assemble a cost conservation team comprised of allies from finance, IT and more.<\/strong>&nbsp;Use this task force as a valuable resource to strategise and execute your plan. This team will also provide guidance on which projects are essential.<\/p>\n\n\n\n<p class=\"has-margin-bottom-small\"><strong>Do not operate in a vacuum when creating priorities: utilise insights from colleagues, strategic thinkers and knowledgeable vendors within your solution provider partnerships.<\/strong>&nbsp;Now is the time to be open to new approaches to solve budget pain points. You will be more successful in creating and implementing your action plan by inviting affected parties to weigh in during the planning process.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<div class=\"wp-block-group has-margin-bottom-zero has-light-blue-background-color has-background is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center has-margin-bottom-zero\">Read our&nbsp;<a href=\"\/uk\/resources\/how-to-cut-data-center-costs\/\">Immediate Ways to Cut Costs in the Data Centre<\/a>&nbsp;for more strategies.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading has-margin-bottom-small has-large-font-size\" id=\"curb-reduce-spending\">Curb &amp; Reduce Spending<\/h2>\n\n\n\n<p class=\"has-margin-bottom-medium\">According to an April 2020\u00a0<a href=\"https:\/\/www.gartner.com\/en\/newsroom\/press-releases\/2020-04-03-gartner-cfo-surey-reveals-74-percent-of-organizations-to-shift-some-employees-to-remote-work-permanently2\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Gartner CFO survey<\/a>, 49% of CFO respondents have delayed capital expenditures. With so much fluctuation in the economic landscape, you may need to cut IT budget expenses quickly. But how do you speed up cost reductions? Start by creating a list of action items that will reduce IT costs immediately.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-margin-bottom-small has-medium-font-size\" id=\"purge-unused-subscriptions\">\u00bb Purge Unused Subscriptions<\/h3>\n\n\n\n<p class=\"has-margin-bottom-medium\">SaaS management company<a href=\"https:\/\/www.coreview.com\/news\/50-of-microsoft-365-users-are-not-managed-by-default-security-policies-coreview-research-finds\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">\u00a0CoreView reports<\/a>\u00a044% of Microsoft Office licences are \u201cinactive, underutilised, oversized or unassigned.\u201d\u00a0<strong>If you\u2019re in a pinch and need room in your budget fast, dive into your tech stack and analyse usage data to assist in the rationalisation of purging unused tech or software licences.<\/strong>\u00a0It\u2019s not uncommon for companies to purchase more subscriptions than are needed for certain programs, which results in overspending. If you discover software or apps that are going unused, reduce your tech stack to quickly steer money back into your budget.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-margin-bottom-small has-medium-font-size\" id=\"partnering\">\u00bb Revisit CapEx Costs<\/h3>\n\n\n\n<p class=\"has-margin-bottom-medium\">If your IT department is planning a hardware refresh, you can also&nbsp;<strong>find significant savings by evaluating the purpose of the refresh and your options beyond a traditional OEM offering.<\/strong>&nbsp;Extending the life of working equipment meets your business needs and can save on IT departmental costs. For critical hardware needs or requirements, consider partnering with a third-party maintenance (TPM) provider to lower costs and increase equipment longevity. Postpone your equipment refresh and delay non-essential capital expenditures with TPM solutions. Learn more about the&nbsp;<a href=\"\/uk\/resources\/what-is-third-party-maintenance-data-center\/\">benefits of third-party maintenance<\/a>&nbsp;in the data centre.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-margin-bottom-small has-medium-font-size\" id=\"reduce-opex-costs\">\u00bb Reduce OpEx Costs<\/h3>\n\n\n\n<p class=\"has-margin-bottom-medium\">How much is your average equipment maintenance spend and how do increasing post-warranty support costs impact your budget? According to Gartner,<strong>&nbsp;third-party maintenance offers around 50-70% off OEM server, storage and network support.<\/strong>&nbsp;In anticipation of future unknowns, you need flexible options and lower costs, allowing you to focus your efforts on managing more complex issues.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignwide has-margin-bottom-medium has-light-blue-background-color has-background is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading has-margin-bottom-small has-large-font-size\" id=\"prepare-for-more-challenges\">Prepare for More Challenges<\/h2>\n\n\n\n<p class=\"has-margin-bottom-small\">It\u2019s not necessarily all doom and gloom! 46% of&nbsp;CFOs reported&nbsp;they expect a \u201cV-shaped\u201d recovery or a return to normal revenue activity by Q3 2020. The key to effective cost containment strategies is to start with an understanding of what you are being asked to accomplish, the impact of the actions and what the results will look like in the end. Identify the short-term actions you can take with relative ease and then transition to the long-term actions. Long-term goals may include more complexity and require more input from your cross-functional cost conservation team.<\/p>\n\n\n\n<p>You\u2019ll need to resist the pressure and unrealistic expectations that naturally occur during times of extended uncertainty and challenge. Although it may feel like everything is resting on your shoulders, take advantage of the experience around you. Once your plan is ready to launch, communicate it clearly, review expectations and be ready for adjustments.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading has-margin-bottom-small has-large-font-size\" id=\"key-takeaways\">Key Takeaways<\/h2>\n\n\n\n<div class=\"wp-block-columns has-margin-bottom-zero is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:60%\">\n<h3 class=\"wp-block-heading has-margin-bottom-xsmall has-medium-font-size\" id=\"cost-reduction-goals\">\u00bb Cost Reduction Goals<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create a multi-phased approach to guide your department changes over time<\/li>\n\n\n\n<li>Present and communicate your plan to employees and colleagues with an open dialogue<\/li>\n\n\n\n<li>Assemble a cost-cutting task force comprised of cross-departmental allies<\/li>\n\n\n\n<li>Utilise insights from colleagues, strategic thinkers and vendors to move forward<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-margin-bottom-xsmall has-medium-font-size\" id=\"curb-reduce-spending\">\u00bb Curb &amp; Reduce Spending<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Delay capital expenditures and cut costs where needed<\/li>\n\n\n\n<li>Analyse subscription usage data to rationalise purging unused licences<\/li>\n\n\n\n<li>Combine decentralised tasks to decrease repetition and create a clean-system landscape<\/li>\n\n\n\n<li>Focus on process and communication standardisation<\/li>\n\n\n\n<li>Extend the life of equipment that is meeting your business needs with third-party maintenance<\/li>\n\n\n\n<li>Reduce your hardware maintenance spend with an alternative to OEM support<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-margin-bottom-small has-medium-font-size\" id=\"prepare-for-more-challenges\">\u00bb Prepare for More Challenges<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Understand what you\u2019re being asked to accomplish, the impacts and the results of cost-cutting initiatives<\/li>\n\n\n\n<li>Identify short-term and long-term actions that can be taken<\/li>\n\n\n\n<li>Resist the pressure and unrealistic expectations that occur during times of extended uncertainty and challenge<\/li>\n\n\n\n<li>When your plan is ready to launch, communicate clearly and review for adjustments<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\">\n<div class=\"wp-block-group has-light-blue-background-color has-background is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-margin-bottom-xsmall\"><strong>Resources<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/de\/Documents\/finance-transformation\/CFO%20Insight-Scenario-Planning.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">How CFOs Can Use Scenario Planning as a Strategic Tool in an Uncertain Economy<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.mckinsey.com\/business-functions\/mckinsey-digital\/our-insights\/it-architecture-cutting-costs-and-complexity\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">IT architecture: Cutting costs and complexity<\/a><\/li>\n\n\n\n<li><a href=\"\/uk\/resources\/how-to-cut-data-center-costs\/\">Immediate Ways to Cut Costs in the Data Centre<\/a><\/li>\n\n\n\n<li><a href=\"\/uk\/resources\/what-is-third-party-maintenance-data-center\/\">What is Third-Party Maintenance in the Data Centre?<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In this article, CFOs will learn how they can work with IT partners to cut costs quickly in uncertain and challenging times. The following information will help to generate action items for cost containment and highlight key cash conservation ideas including communicating priorities, prioritising needs and partnering with a cost-saving support option.<\/p>\n","protected":false},"author":32,"featured_media":77192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"freeform":false,"hero_image_id":76233,"show_author":false,"table_of_contents":[],"footnotes":""},"categories":[736],"tags":[],"resource":[568],"class_list":["post-33615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-budget-cost-savings","resource-articles-insights"],"featured_image_src":"https:\/\/serviceexpress.com\/uk\/wp-content\/uploads\/sites\/5\/2024\/08\/Practical-IT-Cost-Containment-Strategies_Meta-Images.jpg","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Practical IT Cost Containment Strategies | Service Express UK<\/title>\n<meta name=\"description\" content=\"Strategies for IT cost containment: how to meet cost reduction goals, reduce spending through CapEx &amp; OpEx and prepare your IT team for the future.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/serviceexpress.com\/uk\/resources\/it-cost-containment-strategies\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Practical IT Cost Containment Strategies | Service Express\" \/>\n<meta property=\"og:description\" content=\"In this article, CFOs will learn how they can work with IT partners to cut costs quickly in uncertain and challenging times. 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