Top IT Cost-Cutting Mistakes You Must Avoid

Stay away from these cost-cutting practices to prevent your business from stagnating

The post-covid workforce is all about cutting costs for most companies, from startups to enterprises. Similarly, IT leaders are looking for chances around the corner to cut costs, and the first and last thing in their mind is eliminating unnecessary applications and IT assets. But in that process, they loosen the grip way too much, making a mistake. John Edwards writes about seven cost-cutting mistakes IT leaders must avoid in an article for CIO.com.

Here is what he has written about:

  • Consider which IT investments are the most valuable for your organization, and make sure these align with your business goals. One way to save money is to outsource less significantly.

  • Instead of downsizing your organization, canceling projects, and deferring asset purchase, develop a proactive approach like optimizing IT operations, sourcing, and project portfolio management.

  • Cutting on cybersecurity might push your IT infrastructure and networks to security risks.

  • Cutting on new technology initiatives will cause hindrance to your growth as there is a constant demand for growing technology, and you can't stay behind.

  • If you are cutting costs on spend optimization tools, you will spend even more on in-app redundancy, unused applications, etc.

  • Get rid of the "one size fits all" policy. Do not try to cut everything without having visibility into the sensitive areas of business.

  • Instead of having a mandated target range for cost-cutting, know your IT landscape and cut the costs only if it is really unnecessary or unimportant for you.

What We Think?

Most IT leaders around the world are dealing with budget cuts. However, they should be mindful of the bigger picture and not lose sight of it while undertaking cost-cutting initiatives. Saving money by downgrading cybersecurity measures might lead to instant saving but can be 10x times more expensive if there is an attack on the ecosystem. They should also start implementing practices like SaaS governance that’ll help identify SaaS sprawl and thereby remove additional costs. Also, investments in properly researched productivity-enhancing tools mustn’t be stopped as they’ll give you a positive ROI in the long run.

You can read the full article here.