November 17, 2008

Simple steps can help IT do more with less

Cutting costs in IT does not necessarily mean laying staffers off, deferring projects, or reducing support.

With the global economy lurching toward recession, everyone is being asked to do more with less, and cutbacks and layoffs are weighing heavily on people's minds. But cutting costs in IT does not necessarily mean laying staffers off, deferring projects or reducing support. There are simple steps every company can take to significantly save money and improve the bottom line during these turbulent economic times.

You can start by maximizing your company's IT assets and resources. Do an inventory of hardware and software and determine what is underutilized or needlessly duplicated. Some applications and software might be able to share a server. You might find that you're licensing multiple versions of the same software and that it would be cheaper to upgrade to one version. Perhaps you're providing support for two kinds of very similar software, such as Unix and Linux operating systems; again, it would be less expensive to consolidate.

[ Learn more about how the financial crisis is affecting IT and the high-tech industry, plus what IT can do to help, in InfoWorld's special report. And get sage advice on IT careers and management from Bob Lewis in InfoWorld's Advice Line blog and newsletter. ]

You may be surprised just how many IT resources are underutilized. I have consulted for several large corporations that were reflexively prepared to purchase new hardware to support a project when there was already more than enough capacity to satisfy the new needs. By making better use of the hardware they already owned, these companies saved big. I have seen similar savings when companies have eliminated similar but redundant software applications.

It is also important to maximize the abilities and talents of your staff to achieve more. Partner with human resources to make sure every person is in a job that suits his training and talent -- the right person for the right job. Don't just shuffle staffers around or reorganize as a matter of habit; make sure that you move each staff member into the job that he is best qualified to do. A worker who is in a job that best meets his talents will work harder, smarter and faster. This translates into cost savings and a happier, more productive staff.

Efficiency is another key ingredient in cost reduction. As a general rule, inefficiency leads to waste, which invariably increases operating costs. But many IT organizations neglect or overlook this important aspect of cost reduction.

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