Latest IT investment trend? Cost-cutting tech that also transforms

Enterprises are investing in digital solutions that help them save on infrastructure and other costs while enabling them to transform the business. Experts from Deloitte and Gartner explain why.

Latest IT investment trend? Cost-cutting tech that also transforms
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Spend money to save money is an age-old aphorism. No statement may ring more true today for IT leaders hungry to disrupt, as CIOs are investing in digital technologies that both reduce operating costs and transform the business.

Cloud services, robotic process automation (RPA) and cognitive technologies, such as artificial intelligence (AI) and machine learning (ML) boost performance and facilitate operations at a fraction of the cost of more traditional technologies and human labor. Not surprisingly, they are fast becoming key investment for today’s CIOs.

Digital risks, including concerns about disruption and cybersecurity threats, are spurring organizations to use cost reduction as a mechanism to fund technological transformation, says Omar Aguilar, Deloitte’s global leader of strategic cost transformation.

More broadly, the trend is a sign of how CIOs have evolved their approach from reducing costs to grow the business, to a "save to transform" mindset, says Aguilar, who surveyed 1,200 executives and senior business leaders worldwide for research on cost management.

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