Arun Gupta of InformationWeek.in shares in this blog a specific mantra that Indian CIOs have been supposed to follow up to now–“Do more with less.” Yes, a running theme these days is to squeeze all the unnecessary costs out of every line item in IT budgets. But Gupta wonders in his post how much more IT departments can really do with less. Where can you actually look for new opportunities to cut costs?
The “Predominant Theme”… Seems Impossible?
CIOs are really finding it tough to figure out where to find additional savings, what with all the expenditure issues coming from different aspects of IT, in both hardware and software.
Hardware refresh had eliminated maintenance costs for a few years, but now maintenance and support contracts are up for discussion for all the critical and non-critical hardware. Users now expect desk side support for all types of incidents and problems; with rising manpower costs, hardware service vendors and maintenance providers are demanding inflation linked increases.
Last time around there was a flurry of activity around license management; are people really using their allotted licenses? Thus, software license costs were pruned down to the bare minimum required; number of users has gone up now and there is a need to buy additional licenses. Vendors pushed usage audits and attempted to enforce compliance to license agreements putting the CIO in a precarious situation; no one wanted to be non-compliant. Open source again became a discussion with limited success for some.
IT groups are now brainstorming among themselves feasible ways of coming up with cost-cutting solutions. Some say to try cloud with pay-per-use models. Some have suggested to explore strategic or total outsourcing. Others have even proposed to hire externally by means of consultants who can give tactical advice. All these options are viable, in many ways practical even. But, practically speaking, why not consider revenue growth as an option?
Read the Original Article: http://www.informationweek.in/informationweek/cio-blog/296891/how-much-more-with-less