Posted by NaviSite Quarterly

Cutting costs is the top agenda of enterprises in the current economic backdrop. However, cost trims are not synonymous with trimming business efficiency. Some near-term cost-saving initiatives, if chosen carefully, can surely help you execute your long-term vision.

Here are a few smart IT tips on how to run a lean business while gaining efficiencies and a flexible IT environment:

Streamline your technology portfolio

• Move towards newer, cost-effective, and energy-efficient technologies such as infrastructure virtualization, cloud computing, utility platforms, voice-over-Internet protocol, and web 2.0 that save operational and capital expenditures as well as energy costs.
• Integrate and standardize business processes with a smart SOA strategy to make your enterprise leaner.
• Rationalize your applications portfolio, especially if you’ve been through mergers and acquisitions, to identify overlaps and make more efficient use of what you already own.

Leverage the strengths of your IT service provider

• Outsource to eliminate the need to invest in your own IT infrastructure or tools. Reach out to an IT service provider for managed services to monitor and manage your critical IT components.
• Negotiate with your main IT vendors to get the best pricing, and watch out for any hidden costs and risks.
• Put your IT dollars in “high impact” business areas and buy only what you need. For example, you can go for reduced SLAs for non-critical IT components.
• Consolidate multi-vendor environments to a single service provider to take advantage of economies of scale and skill.

Improve internal IT operations

• Prioritize IT projects – Look at which project can be monetized first, and pull out of or defer projects that have lost their sponsor.
• Keep new hardware purchases on hold – Put Moore’s Law to work for you: hardware will be cheaper in six months, if you can hold on. Leverage the existing resources to the maximum.
• Cut waste in office – Use what you’ve got more effectively – Put laptops/printers/copiers in “sleep” mode when not in use. Avoid printing documents or emails unnecessarily.
• Audit the invoices you pay – You may be paying maintenance for software you no longer use or is used by only a few employees rarely.
• Manage your assets smartly – Implement various supply chain initiatives, quality management programs, and Total Productive Maintenance methods.
• Optimize your IT workforce – Recognize the strengths and vulnerabilities; identify and secure the right talent, and focus on improving their performance and productivity towards common goals.

So, get ready to get the maximum value from your limited IT spend. Begin with creating a structured cost-saving plan – go for quick hits as well as long-term measures, and keep your business afloat in the downturn.

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