Managing IT Costs in Uncertain Times

As IT managers learn to deal with leaner economic conditions, CIO Insight research reveals which technologies and cost management techniques result in the greatest savings. Negotiation, virtualization, standardization and consolidation, it turns out, are the most effective ways to significantly reduce costs; other practices (including layoffs) are much less likely to make a big difference to the bottom line. The findings are based on CIO Insight's "saving's ratio," which is the percentage of respondents who have received large savings through a cost-cutting practice divided by the percentage of respondents who received minimal savings. The findings show that: CIOs are under moderate pressure to cut costs; services are being cut back; teamwork, negotiation and standards equals savings; virtualization and consolidation lower costs, and that most it organizations stay on budget. Bottom line: Don't shoot the staff. CIO Insight's Allan Alter reports.