Gartner recommends 20 ways to cut IT costs

15.10.2008
In tough economic times, all enterprise departments are required to tighten their belts. To help IT execs navigate through the cost-cutting maze, Gartner analysts Wednesday presented a list of 20 ways that IT execs can slash expenses.

1. The most obvious place to start is people costs. Gartner estimates that 37% of the average IT budget is dedicated to personnel, so this represents a major opportunity to save money. Gartner recommends a blend of hiring freezes, reducing or eliminating special bonuses, cutting back on outside contractors. Also, global companies that have opened offices in remote areas should consider bringing those workers back home.

2. Flatten the organization. Instead of having one person manage six or seven employees, trim some of that middle management and have your IT execs manage more like 20 people. A flat organization not only saves money but also can lead to more efficiency.

3. Move to shared services. In other words, consolidate things like help desk into one group that services the entire company.

4. Even if you have to borrow somebody from another part of the company, bring a finance person into your leadership team so that person can analyze your budget and find ways to help you trim costs.

5. Don't ignore "unmanaged" costs like printers or data center power.