Success Story

Cost optimization for complex global IT organization

Our collaboration with a large Scandinavian customer has led to 20%+ savings in the total IT operations budget in a year!

Our expertise in optimizing IT operations was the key to unlocking such significant savings. Utilizing our rich 15+ years of industry experience, we diligently carved out savings by

  • reducing unused infrastructure capacity,
  • transforming complex software licensing costs into simplified, efficient models,
  • ensuring optimal use of invaluable engineering resources,
  • identifying opportunities to automate manual efforts.

But we didn’t stop at savings alone! In a strategic move to propel business growth, our customer reinvested half of these savings to create new IT capabilities that are sharply focused on adding business value.

Evergo cost optimization approach was built on a potent blend of good old common sense, robust, fact-based business analysis, and cutting-edge TBM methodology.

Our story illustrates a successful project and a true transformation in IT operations.

Challenge

Increased pressure on growing IT costs during the pandemic forced global IT organizations to seek cost optimization opportunities. After initial reflections, it was realized that simple cost-cutting activities offer limited opportunities. Thus, the cost optimization approach was explored to unlock the full potential of lower IT spending.

Results & benefits

Our project has achieved the following results:

  • Opportunities for quick win cost-cutting were identified and framed for execution, thus letting to experience a quick win and prove the value of our efforts.
  • In the meantime, the ‘better IT’ team was formed and engaged key management personas so that cost optimization became a key ambition for the management team.
  • A cost optimization plan was formed, and the accountabilities and responsibilities were defined to make the execution transparent and straightforward.
  • Thanks to deeper business and financial analysis, cost optimization opportunities have been identified and classified into core categories.
    • Infrastructure¬†
    • License and SaaS
    • Utilization of scarce human competence
    • Partners and Vendors
    • Automation¬†opportunities

Benefits for our customer:

  • 10% cut in IT operations run rate costs in the short term.
  • 10% decrease in the potential of IT spending identified to be achieved in 12 months.
  • Cost awareness was elevated as a key perspective of the IT management team.
  • Several recurring cost improvement and rationalization initiatives were activated and brought value through continual cost management practices.