The state of IT Cost Optimization 2023 [Infographic]

In 2023, cost optimization is top of mind for IT decision-makers. A striking 47% of them say it’s their biggest concern this year, with many feeling the pressure to make their IT budgets stretch further. The challenge is clear—while only 5% of decision-makers believe their IT budget is fully optimized, a substantial 16% say it needs a complete overhaul.

The economic downturn is forcing many companies to be more strategic with their investments.

In fact, 54% of IT decision-makers are now evaluating new investments more carefully, ensuring that every dollar spent brings value to the organization.

This careful scrutiny is shaping the way businesses approach IT spending in 2023, with a greater focus on optimization and efficiency.

IT cost optimization has become a big focus for many companies, especially with the current economic challenges. Things like inflation, market uncertainty, and supply chain disruptions are making it harder for organizations to balance their budgets.

And while IT departments are crucial to running businesses smoothly, they’re also one of the largest parts of a company’s spending, with software costs alone sometimes taking up as much as 40% of the budget. So, what are businesses doing to manage their IT spending this year? And how are they trying to find savings without cutting corners?

Why IT Cost Optimization is Key

Beyond just saving a few dollars here and there, optimizing IT costs brings a bunch of benefits that make life easier for everyone in the company. First off, it can seriously improve how things run day-to-day. When businesses focus on IT cost optimization, they’re often able to reduce downtime and make systems run more efficiently. This means employees can do their jobs without constant disruptions, which can make a big difference when it comes to productivity and customer satisfaction.

And let’s not forget about risk management. IT cost optimization helps with data security, compliance, and even disaster recovery. With better systems in place, businesses are in a stronger position to defend against cyber threats and avoid the headache of audits or fines. Plus, optimizing IT spending means you’re not just focused on saving money — you’re freeing up the budget for new tech, fresh ideas, and innovation that can keep the company growing and thriving.

The Rise of the “Cost Optimization Mindset”

But it’s not all smooth sailing. Many executives face a few hurdles when it comes to managing IT costs effectively. A lot of them feel pressed for time, juggling so many tasks that they can’t always focus on optimizing IT expenses.

Others say they just don’t have the full knowledge of the technology market and the solutions out there that could save them money.

On top of that, a lot of companies struggle with understanding exactly where their money is going because they don’t have clear visibility into IT spending.

Tackling the Challenges

To make IT cost optimization work, companies need to take a strategic approach. They can start by using automation tools to handle routine tasks, freeing up their teams to focus on more important work. And with the right IT management software, they can get a clearer picture of their spending, spotting areas where they could be more efficient.

It’s also about making sure that IT decisions align with the overall business goals, ensuring that every technology investment contributes to the bigger picture.

Lastly, making sure the team stays up-to-date is crucial. Technology moves fast, and keeping skills sharp helps IT staff spot opportunities to improve efficiency and cut costs without sacrificing quality. With the right tools, the right approach, and a little bit of time and attention, IT cost optimization can be a game-changer for any business.

In the end, IT cost optimization isn’t just about trimming the budget. It’s about creating a smoother, more efficient operation that allows employees to be more productive, keeps data safe, and provides room for growth and innovation. And that’s something every company can benefit from in 2023.

In our today’s infographic from Crayon, tackling “The state of IT Cost Optimization 2023”.