Growing inflation across the globe is primarily driven by supply side constraints and is putting pressure on the cost of capital, wages, procurement and other areas of the of business. This is impacting the operational and financial health of every business including IT. Following levers could be used to Destress the Balance Sheet of an IT organisation to reduce OPEX, increase Free Cash Flow and deploy the freed capital in digital enablement

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Inflation Impact on IT
Levers to Destress Balance Sheet
Interest Rate
or
Cost of Capital
Inflation
Wages
Assets
Liability
Equity
Increase in
Current
Liability
Reduction
In
Net Working
Capital
Stressed
Balance Sheet
Key Message
• Growing inflation across the globe is primarily driven by supply side
constraints and is putting the pressure on the cost of capital, wages,
procurement and other areas of the of business.
• This is impacting the operational and financial health of every business
including IT.
• Following levers could be used to Destress the Balance Sheet of an IT
organisation to reduce OPEX, increase Free Cash Flow and deploy the
freed capital in digital enablement
o Cost Arbitrage
o Technology Enablement using Cloud, AI, RPA, ML
Internal External
Onshore
Location
Offshore
Domestic In House
Captive
Ownership
Offshore In House
Captive
Domestic
Outsourcing
Offshore
Outsourcing
Cost Arbitrage
Technology
Transformation Cloud AI RPA ML
Levers to Destress
the Balance Sheet

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