Ten Key Actions to Reduce IT Infrastructure and Operations Costs - Slide 2

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I&O leaders need to re-examine their key initiatives to determine which ones to focus on as near-term priorities. In doing so, there are three major questions to ask:

  • Does the I&O key initiative strongly support a high-priority business initiative that needs to be completed in the near term?
  • Does the I&O key initiative lower the I&O cost structure in the time frame required?
  • Does the I&O key initiative lower risk by upgrading I&O to prevent major outages or severe performance deterioration? 

As many IT organizations are under intense pressure to continue to implement cost-cutting initiatives, Gartner Inc. has identified 10 actions that can reduce IT infrastructure and operations (I&O) expenses by 10 percent in 12 months, and as much as 25 percent in three years.

"I&O represents approximately 60 percent of total IT spending worldwide, so with IT budgets remaining tight, it's no wonder that I&O cost-cutting pressure continues to be intense," said Jay Pultz, vice president and distinguished analyst at Gartner. "When it comes to I&O cost reduction, there is no 'magic bullet,' but best results can be achieved by implementing as fully as possible the 10 key cost reductions we have identified."

Gartner analysts said that due to priority conflicts and resource constraints, few I&O leaders said they have implemented 50 percent or more of the total cost reduction opportunities these 10 key actions offer. However, depending on where an organization is now, fully implementing these 10 cost-cutting suggestions can provide significant savings.

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