As well as coming under pressure to add corporate value through e-business initiatives, IT managers are being asked to keep down costs in their own departments. Some are considering lay-offs as their first move, but this could leave firms with a shortage of essential skills in an economic upturn.
As part of any economy drive, analyst firm Gartner recommends that IT managers should consolidate their networking requirements by combining all their disparate network spending into a single contract, to negotiate higher discounts. Many firms buy voice, data, mobile and other services from the same network service provider, but only secure a low discount on each, because they have many separate contracts.
Managers should also try to renegotiate better terms when buying PCs, Gartner said, because as competition among PC vendors increases, there are more opportunities for discounts.
IT directors should also re-evaluate the cost of their work space, as this can be the second highest cost after spending on staff. Managers should investigate the potential cost savings of introducing remote access, to reduce the need for physical office space.
Finally, Gartner said managers should examine their server and storage infrastructure to discover if any of it is surplus to requirements, by monitoring usage levels.
Siemens Financial Services, the leasing arm of Siemens, naturally argues that leasing arrangements for technology can help companies to cope with short-term budget restrictions, and can also lower costs. It argues that the alternative of buying technology that may depreciate quickly can be more expensive.
Elsewhere, tools are available to monitor technology, networks and processes and help IT managers to justify their spending. For example, software can keep tabs on software licences, PC upgrades and hardware use. '[Such capabilities] allow IT managers to justify corporate investment within the IT department,' said Pat Donne, vice president, northern Europe for asset management company Staff & Line.
