The corporate world is undergoing a seismic shift in its approach to IT spending, with IT cost optimization becoming a central focus, according to the latest State of IT Cost Optimization in 2023 report.
“Understanding precise IT expenses and optimizing them effectively has become the linchpin for modern businesses,” commented Jeremy Kushner, a prominent figure with BACS Consulting Group, a renowned leader in digital transformation. “We’re moving away from the ‘spend more to get more’ mindset to a strategy of maximum value at minimal costs.”
The report unveils that 90% of global businesses consider their cost structure optimization paramount. This insight emerges when the world has faced substantial challenges, from global financial uncertainties to intricate local-level dilemmas, such as skill shortages and supply-chain disruptions.
Kushner adds, “This is not just about curbing costs. It’s a strategic shift towards efficient resource allocation. In our work at BACS Consulting Group, we’ve seen firsthand the tremendous potential businesses unlock when they have a transparent grasp on their IT outlays.”
In a world where vendors often entice companies with discounts for more extensive product suites, the study underscores a significant disparity between what firms genuinely require and what they eventually procure. 95% of businesses globally believe they can fine-tune their IT spending.
Delving into the mechanics of this shift, the report highlights:
- Collaboration is Key: Beyond being an IT department’s responsibility, IT expenses often span various organizational sectors. 62% globally now employ a FinOps practice, while 77% have a software asset management discipline.
- Navigating Uncharted Territories: Leaders consistently find IT cost optimization convoluted aspect of managing IT assets. Almost half admit they lack a clear picture of their IT costs, emphasizing the need for tools that offer transparent insights.
- External Expertise Becomes Vital: 87% of companies worldwide leverage external consultants to optimize their IT expenditures, particularly for their expertise in cloud expense optimization and understanding internal spending trends.
Kushner reflected on the broader implications, saying, “This trend is more than just a nod to the economic climate. It’s a testament to the rapid digital shifts businesses are experiencing. As they increasingly rely on tech, understanding and managing associated costs will be pivotal.”
The BACS Consulting Group, with its rich legacy in guiding digital transformations, stands at the forefront of this evolving narrative, championing optimized IT spending as the backbone of future corporate success.
