Managing It Spending

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  • 1. Page  Managing IT spending Debmalya Khan
  • 2. Page  Managing IT spending
    • Extracting value from IT functions
    • Need to act quickly to generate cash
    • Strategies to reduce IT spending
    • Optimize the current investments in IT
  • 3. Page 
    • Trim and rationalize demand for new applications
    • Existing IT Capacity ( servers and storage ) and application maintenance spending capped
    • Peel off unnecessary layers and non- value adding functions.
    • Companies may re-negotiate some contracts to reflect changing market conditions and can accelerate efforts to move operations offshore.
    • Lower levels of IT service may be made acceptable.
    Strategies to reduce IT Spending
  • 4. Page 
    • Making money from assets.
    • Selling off Data Centers or spinning off overseas service centers.
    • Effectively use IT to increase their revenues and reduce operational costs in the short term
    Generating Cash
  • 5. Page  Effective use of IT
    • Companies with sufficient management resources – restructuring of their IT department
    • Realize more revenues by changing management models and promoting more interaction with the rest of the business
    • Generate funding and support within the organization for more far reaching improvements
    • IT can be vital for improving supply chain by enhancing logistics and inventory management.