Managing It Spending

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Managing It Spending

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

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