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Managing IT spendingManaging IT spending

Debmalya KhanDebmalya Khan

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Managing IT spendingManaging IT spending Extracting value from IT functionsExtracting value from IT functions

Need to act quickly to generate cashNeed to act quickly to generate cash

Strategies to reduce IT spendingStrategies to reduce IT spending

Optimize the current investments in ITOptimize the current investments in IT

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Trim and rationalize demand for new applications

Existing IT Capacity ( servers and storage ) and Existing IT Capacity ( servers and storage ) and application maintenance spending cappedapplication maintenance spending capped

Peel off unnecessary layers and non- value adding Peel off unnecessary layers and non- value adding functions.functions.

Companies may re-negotiate some contracts to reflect Companies may re-negotiate some contracts to reflect changing market conditions and can accelerate efforts changing market conditions and can accelerate efforts to move operations offshore.to move operations offshore.

Lower levels of IT service may be made acceptable.Lower levels of IT service may be made acceptable.

Strategies to reduce IT Strategies to reduce IT SpendingSpending

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Making money from assets.

Selling off Data Centers or spinning off overseas service centers.

Effectively use IT to increase their revenues and reduce operational costs in the short term

Generating CashGenerating Cash

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Effective use of ITEffective use of ITCompanies with sufficient management resources – restructuring of their IT department

Realize more revenues by changing management models and promoting more interaction with the rest of the business

Generate funding and support within the organization for more far reaching improvements

IT can be vital for improving supply chain by enhancing logistics and inventory management.