5 ways CIOs can curb costs before recession hits

CIOs can get ahead of any possible financial fallout from the COVID-19 pandemic by reducing corpulent tech portfolios, including extra SaaS licenses and cloud instances, before CFOs come for tech budgets.

5 ways CIOs can curb costs before recession hits
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Now that CIOs have completed step 1 of their ad-hoc coronavirus crises playbookhammering out remote work and business continuity strategies — many are evaluating step 2: cost containment, ranging from right-sizing instances of cloud software and renegotiating SaaS contracts to eliminating excess applications and shuttering legacy servers and other hardware.

Such are the moves CIOs may take to get ahead of any financial fallout the coronavirus crisis may have on their business, as the pandemic rages on, crippling productivity across every sector, and CFOs get increasingly skittish about budgets.

Coronavirus spooks CFOs

Eighty-seven percent of finance leaders reported great concern for their business, with 80 percent expecting COVID-19 to decrease revenue or profits in 2020, according to a recent survey of 55 CFOs in the U.S. and Mexico polled by PwC. Sixty-seven percent of these CFOs say they are prepared to reduce costs to counteract the financial impact of the COVID-19 pandemic. Translation: It’s knives out time.

“CFOs are just doing their jobs and focusing on driving value,” says ServiceNow CIO Chris Bedi. “They will start to question things that are not on the value side of the ledger.” Accordingly, it’s more important than ever for CIOs to show quantitative proof that their investments are providing value to the business, Bedi says.

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