Forum News

Continuous IT Co$t Optimization - Doing More With Le$$

Tyrone Magby, Sharon Devine, & Jim McGittiganOn August 22, The NYS Forum was host to providing a learning experience about trends, observations and proven strategies for IT cost optimization. Government agencies are challenged with the need to balance reduced costs during times of fiscal constraint with the goal of not only sustaining service delivery, but improving business operations.

Geared toward providing a foundation and understanding of IT cost reduction opportunities and a framework to guide decision-making, the efforts of the NYS Homes and Community Renewal (HCR) took stage to showcase their effort to implement strategies that led to a 32% savings across 20 maintenance projects.

New York State has successfully launched a significant maintenance cost reduction campaign that has reduced their software and hardware maintenance substantially. Last July, HCR partnered with an IT cost reduction specialty firm to proactively analyze current run rate expenses and upcoming IT purchases. The HCR IT team worked closely with their cost reduction partner to identify all run rate renewal expenses that were due or coming due to strategize on the best cost reduction strategies. Three strategies were identified that helped HCR reduce their run rate expenses: (1) Introduce competition into the hardware maintenance category; (2) Analyze the strategic nature of their software maintenance to determine the best long term strategy; and (3) Optimize assets to eliminate cash drain situations.

Gartner has examined this issue and has observed three rounds of IT cost optimization taking place and has organized a set of decision frameworks to guide clients challenged to reduce their IT spend while transforming their service delivery. Trends and response strategies to address cost cutting, cost optimization, doing more with less, transparency, and strategic shifts were addressed.

Jim McGittigan, Research Director, Gartner CIO Research Group; Sharon Devine, Director for Administrative Services, NYS Homes and Community Renewal; and Tyrone Magby, Director, Hardware and Software Sourcing, Alsbridge Hardware & Software Group were the presenters.

Presentations available at: http://www.nysforum.org/events/NYSExecutiveForum_8_22_2012/

Interested in this topic?  If so, view the September 2011 presentation Operating IT as a Business Within a Business, given by Kevin Belden, Deputy Comptroller and Chief Information Officer, NYS Office of the State Comptroller, http://www.nysforum.org/events/NYSExecutiveForum_9_9_2011/