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Cost Optimisation
Cost Optimisation

Cost Optimisation

Reduce spend & optimise performance to increase investments in future growth

Cost optimisation is the process whereby an organisation systematically analyses and manages its expenditure in order to strike a balance between costs, performance and quality. The aim is not only to reduce costs, but also to deploy resources as efficiently as possible so that the organisation creates more value with less waste.

It is about making informed choices, not blindly cutting costs by automating processes or by using cheaper, equivalent solutions. The calculation of the TCO is also taken into account, by introducing flexibility in deploying resources where they have the most impact. 

 

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How to handle your Cost Optimisation?

When an organisation applies cost optimisation, it can count on both immediate savings and structural improvements. In the long term, cost optimisation ensures greater financial resilience: the organisation is better able to withstand economic changes and unexpected costs.

 

Manage your demand

The best cost optimisation is the Euro you don't spend. Stop projects with low added value for the company. Every project must be validated by a central team. Projects that do not deliver the expected results must be stopped immediately to avoid spending more money without a direct ROI.

Introduce an active SAM role to manage your application portfolio. This profile will deactivate unnecessary applications after a thorough analysis and classification of your software park into critical, useful and nice to have applications. This manager is also responsible for your licence maintenance contracts and performs financial engineering on your cloud consumption (FinOps).

With regard to managed services, review your SLA agreements. Manage these SLAs actively and ensure that they are applied appropriately to your business. Do not make them too loose, but also not too tied, because these strict rules come with a price tag.

 

How do we help our customers? 

Due to the complexity of the IT ecosystem, cost transparency can be a challenge. Organisations invest a lot in innovation, and in order to keep the pace with the new trends of the market, CEO's need to be certain that their investments provide the right return. 

In a cost optimization project we identify the following activities:

  • Spend analysis of the CMO (spend cube, who is spending what and where?)
  • Stakeholder expectation and performance analysis (demand & delivery)
  • Contract analysis (contract duration, volume discounts, rate tables, SLAs, payment schedules, fixed versus variable fees)
  • Reporting and strategy analysis
  • Action plan and prioritization
Procurement Category Strategy process and content

Results after the introduction of IT Cost Optimization

Introducing IT Cost Optimization gives you full transparency and control over your IT spend — and a practical roadmap to savings. You gain a clear breakdown of costs per IT service function, an assessment of cost efficiency, and a structured savings plan with initiatives and a delivery calendar.

You also improve agility through contract maturity analysis and sharper cost allocation insights, while strengthening collaboration with the business through application portfolio rationalization. Vendor and contract rationalization further reduce complexity and eliminate unnecessary spend.

By increasing the accuracy and granularity of key cost metrics and establishing strong cost optimization governance, you can monetize quick wins immediately and drive sustainable mid-term improvements.

 

Conclusion

IT Cost Optimization reduces costs, improves transparency, and strengthens strategic control — enabling a more agile, future-ready organisation.

Cost Optimization

succes story

Cost Optimization
2
Regaining cost control after IT centralization

The client had recently moved to a centralized IT function. The IT budget was under scrutiny due to recent divestitures since the IT function was no longer supporting these divested business activities. 

Read more about Regaining cost control after IT centralization

Curious about how you can optimise your IT costs?

Discover how to make real savings and receive the exepected ROI of your IT investments.

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Tel: +32 (0) 476 673 643
Email: cato.vandessel@pactassociation.com

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