IT cost reduction: There are no "fixed" IT costs and "holy cows" in restructurings

In the context of company restructuringors or turnarounds in IT areas, the focus is often also on IT costs. The question arises as to where to start or where to which levers are to be moved, so that less costs do not result in less benefit.

In the vast majority of cases, it is not enough to collect the so-called "low hanging fruits", i.e. to achieve a significant reduction in IT costs by simple means. Many companies have gone through multiple cost-cutting rounds, and since IT represents a significant portion of overheads in companies, the corresponding costs have usually been considered several times.

Nevertheless, there are considerable opportunities to reduce costs, especially in crisis-ridden IT areas. These include grievances that have so far remained untouched as "holy cows," or potentials whose lifting has been classified as supposed "Mission Impossible." Too often, circumstances are taken for granted, shrugging shoulders, e.g. For example, out of fear of expected resistance in the company or a lack of willingness to change in IT. In addition, many costs are rashly referred to as unaddressable, as they are "fixed costs" (e.g. data centers, IT contracts, personnel costs). In the case of restructuring, however, there are no fixed costs per se; all positions with a relevant amount must be analysed, questioned and knocked off for reduction options. Another reason for omitting cost-cutting potential is simply a lack of transparency and responsibility for certain cost blocks.
This is where it is necessary to start within the framework of the IT restructuring. A broad approach is required, which also calls into question the previously valid self-evidentness of the IT use and the IT architecture in the company. For this reason, the frequently encountered cost-cutting projects with the "lawnmower method" are usually not effective. Savings should be made where a reduction in costs does not result in less benefit. This varies from company to company and from situation to situation and requires careful consideration and a differentiated approach. Then a permanent transparency about the current status of the IT costs must be ensured, combined with the concrete assignment of responsibilities for defined cost blocks to individual IT managers or -Employees.
Exactly where to start within the framework of cost reduction is to be decided in the light of the situation. The main impact of the it turnaround guide for the restructuring of IT describes which concrete starting points and levers for reducing IT costs have the greatest effect.