The Cost Optimization and Benchmarking Playbook

Optimize Today to Transform Tomorrow

When it comes to innovation and speed, a huge gap exists between where IT and business leaders want their organizations to be, and what is actually possible given available resources and practical constraints. Legacy-centric IT shops and business functions are often dragged down by technical debt and inefficient processes that can result in up to 80% of the budget being used to maintain status quo. The cost on “run”-oriented activities needs to be reduced, so that more investment can be made available to fund digital programs. To do so, IT and business leaders need a new paradigm—one that includes a comprehensive benchmarking and cost optimization exercise at every stage of the sourcing journey. What are the right sourcing models and scope segments between retained and outsourced? What are the truly premium versus generic technologies and skills? Am I overpaying? Have I maximized automation and AI from a solution and business case standpoint? What should be the recalibrated SLAs and KPIs for the new paradigm? Whether you are embarking on a new sourcing initiation strategy, looking to calibrate its contracts in the midterm, or rethinking a contract at the end-of-term, benchmarking advisory support can be extremely helpful in objective decision making. And by combining it with a cost optimization process, traditionally competing agendas become complementary: IT and business leaders can both optimize operations today and fund the innovations that will transform their organizations in the future.

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