Gartner: Concentrate on IT cost optimisation

Gartner: Concentrate on IT cost optimisation

IT cost optimisation practices should continuously evolve and it is important businesses are aware of this fact.

This is according to Gartner, which stated that after years of cost-cutting, companies have begun to accept that optimisation is a never-ending process.

A survey of 2,053 chief information officers found that nearly two-thirds believe that the biggest obstacle to successful cost optimisation is the inability of all resources to work together to achieve a common goal.

Gartner suggested businesses base their cost optimisation strategies on five principles – transparency, accountability, agility, simplification and discipline.

Sanil Solanki, research director at Gartner, said that the aforementioned principles will help firms avoid short-term answers to what are long-term problems.

"These principles are geared toward avoiding the danger of tactical cost initiatives, which may seem to generate savings in the short-term, but can mean costs returning into the business in the long term," he stated.

According to the company, supply and demand decision making can be improved through higher maturity IT transparency.

Agility is an important principle when it comes to IT cost optimisation as continuous optimisation relies on the ability of the firm to quickly adapt to internal goals and external conditions.

The third principle – accountability – is crucial to avoid a situation where a culture develops in which IT is reactive as opposed to proactive, Gartner claims.

Simplification is all about reducing complexity in a bid to cut costs, while the final principle – discipline – is based on businesses seeing cost optimisation not as a one-off thing but as a discipline that must be adhered to by all.

Previous research conducted by Gartner found that many chief information officers view reducing the cost of IT as one of their top-three business priorities.

The company suggested eight disruptive forces that need to be managed by IT asset management and procurement professionals, which are the Internet of Things, maintenance fees, software audits, cloud computing, mobile and app stores, virtualisation, big data and bring-your-own-device schemes.

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