Pennies from heaven

The new year is starting soon, and it's time to look at your financial ledger and tighten your purse strings. If you haven't tried to do it yet, it's time to cut capital expenses and operational costs in 2008. This action can cut the overall IT budget by five percent and more. And it is time to look at process and management changes as well as workforce realignments--including outsourcing--while also capitalizing on technological changes. A smart CIO should have been looking at his budget all year and figuring out where and how to trim the fat. It is a tough task for everyone, especially as it comes with more demands for service, security and data management. IT budget gains can be made through process improvements--by looking at projects that don't add value, IT financial management and non-optimized procurement processes. Draw up a list, and check it twice. Make sure the fat and waste in your department are shaved down. Check out outsourcing opportunities as far away as India. And check out your user and vendor relationships. All this may require a 24-7 operation. Nevertheless, remember that a penny saved is one earned.

For more on getting a handle on your budget:
- See this CIO Update article