Cost Saving for IT Infrastructure Management

In a turbulent economic environment there is tremendous pressure on IT organizations to take a hard look at the cost of running IT operations. Infosys' Rama Murthy Prabhala and Rahul M. Joshi discuss long-term and near-term strategies that will help IT Managers and CIO's reduce the costs of enterprise application operations.

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In the case of healthcare customers, rationalization of technology and software licenses lead to a reduction of ˜ 5 percent TCO to the IT organization. Platform consolidation and automation can lead to a further savings of more than 10 percent in the next six months.

While the above mentioned strategies are capable of achieving significant cost savings in the short and medium term, it is important to have frameworks in place to sustain these activities. Many organizations tend to look for immediate returns through IT transformation — however, most are unaware of the level of effort and investment that is required to sustain the rewards. As is evident from Figure 1, most of the strategies mentioned above will plateau after sometime.

A key point to remember is to document the business value of the strategies mentioned above. While some strategies may bring immediate cost savings, others may not — but they will be crucial nevertheless. For example, building a framework around Configuration Management Database (CMDB) may require a significant one time effort — but the rewards are visible when a platform migration is underway.

In conclusion, it is important that in these trying economic conditions CIOs utilize all available strategies and avenues to deliver more with less. They must use this opportunity to build a strong process and technology foundation to prepare their organization for the next upturn.

About the authors Rama Murthy Prabhala is a Delivery Manager with Infosys Technologies Limited. He specializes in program management of large Application and Infrastructure programs with focus on Banking and Capital markets and Manufacturing sectors.

Rahul M. Joshi is a Principal Consultant with Infosys Technologies. He specializes in IT strategy and provides consulting in the area of complex IT transformation programs. He is responsible for IT Service Strategy, Tools, Solutions and Reuse programs in Infrastructure Management Services.

Copyright © 2010 IDG Communications, Inc.

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