I’ve lost count of how many times I’ve seen a “cost transformation” initiative start with the same line. “We need to reduce IT spend by 15%.”
It always sounds reasonable. Budgets are tight, revenue is under pressure, and technology seems like the easy place to “optimise.” But what usually happens next is predictable, projects are paused, renewals are deferred, and headcount is frozen. Six months later, delivery slows down, infrastructure gets stretched thin, and the very initiatives that could have driven efficiency are delayed. We don’t transform, we just trim. And trimming is not transformation.
In most organisations, IT costs live in shadows. Ask ten leaders what makes up their technology spend, and you’ll hear ten different answers. Some will talk about cloud bills, others about headcount, a few about licenses, and someone will mention “run vs change.” The truth is, most of us don’t have a common view of what technology spend actually is. Finance sees it as numbers in cost centres. IT sees it as servers, applications, and projects. The business sees it as an expense that needs to go down. That lack of shared visibility is what turns a healthy cost discussion into a blame game.
Transformation starts with transparency. Before we can talk about “reducing” costs, we need to understand what we’re spending on, why we’re spending it, and what value it’s creating.
When that visibility comes in, the conversation shifts. Suddenly, the question isn’t “Can we cut this?” but “Is this creating value?”
- That redundant SaaS tool everyone forgot about? Cut it.
- The infrastructure hosting three legacy apps with no usage? Consolidate it.
- The automation platform that reduces manual effort by 40%? Double down on it.
That’s what true cost transformation looks like; not random cuts, but reallocation toward value. A good enterprise architecture would defiantly help understanding the value stack but it often falls short of being able to correlate it with actual spends.
Every rupee or dollar saved from inefficiency is potential fuel for innovation. The goal isn’t a smaller IT budget; it’s a smarter one. Think about it: what if we used the savings from rationalising redundant systems to fund the data platform the business has been asking for? Or if the money saved on unused cloud capacity was redirected to automate internal workflows? Transformation done right doesn’t shrink technology. It amplifies it.
This is where structured models like Technology Business Management (TBM) come in. TBM gives a shared language to IT, Finance, and the Business. It helps in mapping every dollar spent to the capabilities and services it supports.
It’s not about making IT accountants. It’s about making IT transparent and Finance informed. Once everyone speaks the same language, cost discussions move from “how much” to “for what.”
Cost transformation isn’t about cutting; it’s about clarity. When you can see where your money goes and what it drives, you don’t need to fight over budgets. You can finally align on outcomes. And that’s when technology truly becomes a lever for growth, not a line item to defend.
Cirvesh
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