The story behind IT cost rises: why transparency and data play key roles
Today, technology is crucial for organizations, and many companies are seeing their IT costs rise faster than their revenue. SaaS licenses, cloud services, and collaboration platforms have become indispensable, but at the same time, the costs are growing faster than the benefits. It's time to look at the real cause and what you can do about it.
1. The hidden factors behind higher IT expenses
Many organizations focus on the monthly software license fee. But those costs are just the beginning. What’s often forgotten:
Unstructured use by employees.
Overlapping in tools.
Contract models that hide price increases.
These hidden costs can increase overall IT spending, even without additional functionality.
2. The importance of transparency
Without insight into how and by whom software is used, efficient management is impossible. Start with:
Collect and analyze usage data.
Map licenses and compare them with actual needs.
Map licenses with contracts.
Dispose of redundant tools or capitalize on consolidation opportunities.
This makes inefficiencies, risks and savings opportunities visible.
3. From reactive to data-driven IT management
Traditionally, organizations only respond to costs at the time of invoicing or contract renewal. But a proactive, data-driven approach allows:
Early optimization is possible.
Better negotiations with suppliers.
Decisions that prioritize value over price.
This means that IT management is no longer a cost item but an added value.
4. Concrete steps for better control
Want to get rising IT costs under control? Start with these steps:
✔ Conduct a spend analysis to segment expenses.
✔ Establish KPIs around usage, ROI, and supplier performance.
✔ Involve procurement, IT, and business stakeholders early on.
✔ Use benchmarks to compare offerings and pricing.
This approach provides structure and ensures that costs feel manageable and predictable.
5. Why this is urgent now
With rising market prices and accelerating digital transformations, organizations have no time to waste. A lack of control not only means higher IT expenses, it can also slow business strategy, hinder innovation, and increase risk.
Conclusion
IT costs aren't just a financial problem; they're a strategic challenge. Through transparency, data analysis, and a collaborative approach, organizations can not only save money but also create business value. With the right tools and insights, IT management transforms from a burden to a driver of innovation.
Struggling to keep control over your IT costs?
PACT helps organizations regain transparency, optimize IT sourcing strategies and turn data into actionable insights.
