Spending 3% more on tech can save 29% on budget says a report

Technology, labor, outsourcing, and overhead costs fall by 29% among "digital world-class," organizations with top digital performance.

According to research from The Hackett Group, Technology, labor, outsourcing, and overhead costs fall by 29% among "digital world-class" organizations with top digital performance. Katie Malon has briefed us more about the report in her article for CIODive. 

This is what she has written.

• If you want to maximize ROI, start before any project has started. IT leadership should be vetting ideas based on previous projects to make sure they will genuinely achieve expected results.

• Successful IT investments are largely dependent on a solid analysis and prioritization of opportunities. Large savings can also be tied to the ongoing improvement of core transaction processes.

• Digital investments may reduce your business costs — but only if you make the right ones. Data analytics, automation, and cloud-first strategies are some recommendations.

• Taking a cloud-first approach will speed up the deployment of new services; this will also prevent any maintenance on the backend.

• But it's not enough to deploy better technology. IT leaders must simultaneously retire outdated systems. 

• You need to be simultaneously upgrading your systems and implementing new technologies to boost performance.

What We Think

IT leaders must look at the bigger picture when it comes to investments. Migration to the cloud, additional security tools, and features might be expensive in the short run but will pay a lot of dividends in the future.

You can read the full article here.