Research “Information Technology Cost Optimization…

Companies have never relied on software more than they do today. With the increasing usage, the costs of IT are also rising. Therefore, improving these is only one of the main tasks in companies.

A survey of 2,050 IT decision-makers in 19 countries around the world revealed how companies manage IT costs and why so many struggle with it.

The degree of complexity of IT costs

In recent years, we have seen a significant increase in the use of software due to for example working from home, etc. Companies will always need IT and business software. However, it is important that this is used in a way that innovates the business, increases efficiency and reduces costs. Optimizing IT costs, which includes controlling and reducing costs while increasing business value, can be a daunting task and not an easier task with the increasing complexity of technologies.
The survey found that more than a third of organizations face a lack of knowledge about optimizing IT spending, while another third cited a lack of time to find the best deals. They face complex management of dynamic IT spending as well as IT staff turnover.

Optimizing IT costs is the biggest challenge

54% of decision makers rated IT cost optimization as the biggest challenge in managing IT assets. Due to the scale and nature of software usage today, it is very difficult for organizations to effectively manage IT costs. Just think of any SaaS application that usually requires a person to have an email address and credit card on hand. Although this is the central way businesses operate, in reality most of them need outside help. The survey found that those firms that made use of outside consultants saved an average of 24% in licensing costs.

It is becoming increasingly difficult to control IT spending

Cost optimization requires a comprehensive view of the company’s current needs and long-term goals. Therefore, IT cost optimization should be understood as a process rather than something that can be solved all at once.
Given the nature of the challenges, the research collected data on what decision makers will prioritize at different stages of the hardware and software lifecycle. In the context of software and hardware migration, companies are in dire need of help understanding a wide range of tools and solutions. In the context of improving cloud environments, 41% of decision makers believe they would benefit from proactive software planning and IT spending management.

The main role of technologies is innovation

The first and most important reason why companies invest so much in technology is that it can increase their ability to innovate. But as long as they lack the skills and capabilities to effectively manage IT costs, they will always struggle to keep innovation going. Therefore optimizing IT costs is also key to gaining a competitive advantage through innovation.

Research – Challenges and Opportunities for IT Cost Optimization

More than just moving to the cloud or innovating, the biggest challenge currently facing IT leaders is addressing IT costs. Check out IT cost optimization challenges and opportunities. Find out why so many are suffering and where they need help – Research: Optimizing IT Costs in 2022

You are also invited to participate in the webinar on June 8, 2022, where leading experts will talk about how to create a successful strategy to improve IT spending.

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