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IT Cost Rationalization
Current market conditions and the relatively weak economic outlook are placing greater pressure and emphasis to sustain competitiveness and financial stability through ongoing cost reduction initiatives. Cornerstone can help our clients identify and plug cost and productivity leakages throughout its IT operations, leveraging industry benchmarks, leading practices and untapped internal capabilities.
Organizations often first look to low hanging fruits for cost rationalization opportunities – renegotiating vendor contracts, outsourcing low value, highly repetitive tasks or deferring infrastructure and application upgrades. However thoughtful examination of IT projects capital and expense budgets in addition to ongoing IT operation budgets will reveal substantial cost reduction opportunities. Cornerstone consultants provide the right combination of experience, methods and analytical thinking to assist organizations in their critical cost rationalization efforts.
Review baseline costs to determine Total cost of Ownership (TCO) and identify cost reduction opportunities
• Rationalize application portfolio
• Consolidate IT infrastructure such as data centers and servers
• Replace legacy dated applications with cost-effective packages
• Standardize technology choices and tools
• Review service and licensing agreements
• Examine organizational approach to build versus buy decisions
• Modernize applications through componentization
• Plan migration to a simplified, standards based and service oriented IT environment
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