Reduction of budget and demand to do more with less has off late become the job description of a CIO than just remaining an annual phenomenon that used to be triggered by the budget. Almost every established corporates today look cost reduction as their top five key focus area every year. The cost reduction has started coming with new names like automation, rationalization, outsourcing, productivity improvement, and many more such definite nomenclature but the essence remains the same ‘Do more with less.’
As an established expert in managing programs for large corporates, Team ScrumStart have been advising many companies on their cost reduction strategies and have learned many lessons of what to do and what must not be done.
Look Beyond the Normal: Every CIO keeps cutting workforce and renegotiating the deals to face the same situation in a few months. The typical ways of cost reduction may give any organization its due for a year or a couple more, but not perpetually. Instead, extending such strategies as the only way to cut cost, CIOs need to look beyond and reinvent their roles from a support role to a business function. The three most effective of these strategies can be: