How to Manage and Reduce IT Costs?
Managed IT Services in Dubai
IT budget creation issues are hardly appropriate to consider independently. Closely related to this process are the enterprise’s IT architecture, as well as project portfolio management.
Given the crisis, the main message from top management is to minimise the cost of information technology. But sometimes it’s hard to understand how much or little we spend on IT. There are several different ways to estimate the amount of spending, and the simplest of them are well known. In order to currently justify the IT budget before the company’s management, it is necessary to identify those projects that need to be completed on the planned horizon, evaluate their “usefulness” for the company’s core business, and make their financial assessment, of course, not forgetting the cost of supporting existing corporate information systems and the costs of the IT department itself.
Strategic IT cost management based on managing the parameters by which decisions are made – quantity and price. Using them, you can influence the amount of costs. In connection with the mega-trend of sustainable business development, the goal is to rationally use all resources, including reducing the consumption of IT services and the cost of their purchase or reducing software licenses.
In many companies, responsibility for rising costs is most often shifted to directors of IT departments. However, not all charges in this area are initiated by the IT service; most often, they arise in connection with decision-making and appropriate behaviour in other departments of the company. Therefore, it is necessary to increase the transparency of costs in IT, measure, and take them into account, analyse, and calculate the results of activities. Controlling serves this purpose.
The concept of IT controlling defines the goals of IT networking companies in Dubai and the criteria for their achievement. IT controlling is often understood as individual tasks, for example, controlling automated or electronic data processing, computer science, information systems, and information technologies. The word IT controlling is understood as the controller of the IT department or the control of IT projects. But this is not enough.
IT controlling includes many objects, tasks, methods for solving them, approaches, and activities. To streamline them and make the structure of IT controlling understandable for business, a concept is being developed. It defines the goals of IT development, their management tools, and criteria for their achievement. As a result, an appropriate understanding of IT controlling in a particular enterprise follows from the adopted concept. The concept of IT controlling also defines the framework for all types of activities in this area and includes the planning, coordination, and management of information technologies and their tasks to optimise the business.
The goals of managed IT services in Dubai controlling and the monitoring of their achievement are determined with the participation of the company’s controlling service. The primary function of an IT controller is to manage the use of IT in business. One can talk about the targeted use of information technologies if they are used to achieve business goals in the main business processes and to coordinate them. This is preceded by the adoption of the right decisions in the field of IT management, and this requires relevant information. Before organising IT controlling, it is necessary to establish the monitoring of the leading business processes, and use IT to optimise them. How to integrate IT controlling into the enterprise management concept based on controlling can be seen from fig. 1.
By linking individual units into one network, IT controlling has several advantages:
Allows you to integrate it into the general controlling of the enterprise; directs the use of IT to achieve the goals of the entire organisation; helps business management to enter the IT sector, establish an effective dialogue with IT specialists and consider this unit as a single factor in increasing productivity, and not as a closed cost unit. Developing a process model for IT requires controlling services if you imagine a process model of IT, consisting of successive stages (processes) – strategic planning, development and functioning of software (software), then the tasks of information management can be formed in the form of a network of interconnected actions, as shown in Fig. 2.
At the first stage, an IT strategy is developed, within the framework of which the relevant measures are determined, their implementation and implementation monitoring to achieve the strategic goals of the enterprise. IT strategy includes:
- Formulation of the target state, what the company is striving for.
- Identifying specific actions to make it and identifying weaknesses.
- Development of alternatives.
- Setting goals and measures to meet them, what and by what time should be done.
- Appointment of responsible persons for events.
- The choice of meters to monitor the achievement of goals by time.