Reducing The Costs Of IT — Views From Consultancies

How do you reduce the costs of IT? To answer this question, Forrester interviewed 21 consultancies that provide cost-reduction services. What did we find? Nearly all consultancies suggested upgrading governance and establishing foundational pieces before savings could be realized. Then, most recommended implementing cost reduction in steps that can be summarized in three phases. The first phase picks up the low-hanging fruit and implements governance. The second phase consolidates simple systems, freezes or kills projects that have weak support, and implements selective sourcing. The third phase rationalizes applications, restructures IT, and expands outsourcing.