It Pays to Consider Creative Cost-Cutting Ideas

Ann All

While saving money is always a goal of smart CIOs, it becomes a primary goal when the economy heads south.

With that in mind, I've recently posted a couple of blogs offering tips on spending wisely in tight times. In one post, I shared a three-pronged cost-reduction strategy from the Hackett Group. And this post was packed with practical, real-world money-saving tips from several CIOs.

Some more great tips are contained in a post from TechRepublic blogger Ramon Padilla. I especially like this post because many of its ideas relate to reducing -- or at least controlling -- labor costs. Many companies look to traditional outsourcing arrangements to yield those savings, but Padilla offers a number of more creative solutions.

For instance, he describes how his company participates in a data center cooperative, whose members all contribute funds toward its ongoing operations. Members also sit on a board, which ensures that the center is run efficiently and at a minimal cost.

The price, Padilla writes, is one "that no commercial vendor can touch" and no single organization could duplicate on its own. Even better, the member costs fall as the data center grows. As in other shared-services arrangements, contracts and SLAs should cover all concerns about security and other issues.

Among Padilla's other smart suggestions:

  • SMBs can form a buying consortium to get better prices from vendors.
  • Easing up on redundancy requirements in some areas will save money and, if done right, shouldn't harm overall service.
  • Ask yourself if staffers need to be on-site 24/7. Many issues can be handled just as well by automation and/or remote personnel.

Add Comment      Leave a comment on this blog post
Dec 13, 2008 7:05 AM Reliance World Reliance World  says:
Video Conferencing is a great way to cut costs and increase workplace efficiencies. What's more, regular use of Video Conferencing also contributes to a healthy work-life balance.Reliance World offers ready-to-use walk-in Video Conferencing services in 105 cities and towns across India and at 1100 locations in over 90 countries worldwide through its global affiliate network. For more information, visit Reply
Oct 23, 2009 1:50 AM Umesh Harigopal Umesh Harigopal  says:

TCO, ROI are always top of mind as you figure out how to manage your top and bottom lines. As a CIO looking to make a difference for your company, your IT desktop investments is surely one area to focus on, more so given your decisions on Windows 7 and Office 2010 migration initiatives.

Probably many of you might have seen the IBM Client for Smart Work announcement that hit the press yesterday. One of these solutions is on Red Hat Enterprise Linux desktop software. Is it just 50% reduction in TCO. Actually a lot more.

Check out this dynamic TCO calculator from Red Hat here: math is simple. You start seeing results by just entering the number of users. Do the math. Share it with your CFO. Save the results if you want to get back to it later on.Best Regards,Umesh HarigopalEcognize

Sep 12, 2010 1:27 AM Olympus International Olympus International  says:


We are BUSINESS MANAGEMENT company from India.

We provide full COST CUT plans, Pay us after you see your profit through our Methodology, We will not sell any product to you,We will find solutions through clearly analysing your company's real costing.

TO join us your company must have minimum 2.5 Million$ turn over / per annum.

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