WEBVTT

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Tech cost

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is ever-increasing,

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so companies ask themselves,

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how do my tech costs compare to my peers?

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Based on our experience for
more than 3,000 projects,

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15 to 40% of tech cost can be reduced.

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There are five to 15%
within the first 12 months.

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30 to 50% of cost reduction
can usually be done

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within the IT function,
the tech function itself,

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whereas 50 to 70% require a
joint effort with the business.

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So you may ask yourself now,

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how do I realize tech cost reduction

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and how do I optimize tech cost?

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There are two different types of levers,

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levers that the IT function
can realize internally,

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for example, vendor optimization,
vendor renegotiation,

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vendor consolidation, as well
as license cost optimization.

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On the other side, there are levers

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that require the consent
from the business.

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For example, project
portfolio optimization,

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application harmonization,

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consolidation and decommissioning.

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This is a little bit harder to realize

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because it takes more time

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and usually also more
negotiations with the business.

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Determining what the cost position is

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of the company against
peers is a no regret move

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with a very high ROI,

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and it's essential to
realize the cost savings

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that are possible to
either increase the EBIT

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or reinvest them to maximize ROI.