Technology Cost: Making Hard Choices for Savings That Stick (with abstract)

Article published by [[Other sources |Bain and Company]] and reviewed by Nikolay Sidelnikov
Technology Cost: Making Hard Choices for Savings That Stick (with abstract)
Published By[[Bain and Company]]
Publish DateJune 07, 2023
AuthorsDanielle Burgs Escobar, Nigel Cornish, Doug Fallon
Topics Tech for business, Management, Costs and profitability
Statistics
Article Sizewords
DiagramsYes
Downloadable VersionYes
Reviewers
Page OwnerNikolay Sidelnikov
Summary AuthorNikolay Sidelnikov


Abstract

The article Technology Cost: Making Hard Choices for Savings That Stick published by Bain and Company is devoted to challenges experienced by CIO when optimise IT costs and describes some practices that might be useful in this context.

Authors describe the challenge in the following way: CIOs understand that technology is more central than ever to business competitiveness but it is also needed to reduce costs in anticipation of a possible recession while also facing inflationary increases in hardware, applications, and people costs.

The article explains that successful cost transformations can have a positive, long-term effect on spending and can prevent costs from returning and describes five traits of it that include:

  • Cost visibility and ambition
  • In-year savings
  • Savings roadmap
  • Execution discipline
  • Ongoing cost management

Each trait is explained in details that give good insights that might help in applying this conclusions in the context of a particular company.

For example, when talking about in year savings, authors explain the importance a holistic view of risk and balance near-term considerations, such as business and execution risks, and long-term ones, like strategy and reversibility.

The article might be a good food for thought for managers that need to resolve the cost transformation challenge.

Full article text: https://www.bain.com/insights/technology-cost-making-hard-choices-for-savings-that-stick/

Subscribe to B2B Experts Digest

Contribute to B2B Experts Community

Subscribe to B2B Experts on LinkedIn

Published on LinkedIn: post