IT Cost Reduction Sales Deck

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Consulting Sales Deck Slides
IT Cost Reduction
Kickoff
Project
Present
Findings
Portfolio/WIP
Analysis
IT P&P
Analysis
IT Services/
Budget
Analysis
Agree
Scope
IT Infra/Projects
Recommend.
IT Org, R&R
Recommend.
Vendor/
Sourcing
Recommend.
IT Governance
& P&P
Recommend.
IT
Architecture
Analysis
Vendor/
Sourcing
Analysis
Cost Reduction
Roadmap
Present
Recommend.

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This document includes a set of slides on IT Cost Reduction
Presentation Overview
This document includes a set of slides on IT Cost Reduction. These slides
were originally developed to be included in sales decks for a management
consulting firm.
The top left title of each slide indicates the functional intent of each slide
(indicated by the off-slide red arrow).
Please use and modify to your needs. Some information may be out of date
and will need to be updated accordingly.
The content on this slide has been partially hidden.
FlevyPro members can download the full document here:
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Reducing IT costs needs to consider both the IT function and the IT
portfolios of Systems and initiatives
Approach
Business needs and services provided
The IT Processes – Planning,
management, development, operations &
support (efficiency)
The IT Organization (number and type of
resources)
IT Sourcing (licensing agreements,
additional sourcing opportunities)
Where money is spent (discretionary
versus non-discretionary)
Governance structure (efficiency)
IT Initiatives (alignment to business
strategy, duplication)
IT Architectures (simplification)
Application portfolio (rationalization,
sourcing alternatives)
Technology infrastructure (rationalization,
sourcing alternatives)
Review of the IT Function
Review of the IT Portfolio of
Systems and Initiatives+
1 2

We leverage our past experience to pull the cost levers that offer the
biggest opportunities for IT cost reductions
Business Need & Value Proposition Slide
Improved Spending Controls
Invoice verification, expense management, hiring freeze examples.
Improved Vendor/Sourcing
At a major global media company we used a series of RFPs and vendor
renegotiations to realize over $30 MM in annual savings.
Revised Support Contracts
Implemented server support prioritization process for growing wireless company
with over 10 percent support contract savings.
Restructure Management and Staffing
At major publishing company we developed a 3 year road map to ramp down their merged IT staffs from 160 to 100
employees and linked specific IT events to each reduction based on production metrics.
Consolidate and Leverage Existing Assets
At a major global media company we reviewed distributed hardware purchases and developed configuration standards with
key stakeholders that let us drive down the price by eliminating all the custom solutions.
Defer Expenditures and Leverage Lower Upfront Cost Technologies
Exchange Online, Safesforce.com
Outsource Functions
At a major publishing company we identified a vendor that provided utility database monitoring and support services. This
reduced on-site database SMEs while leveraging vendor resources to perform routine work remotely.
Virtual/Shared Support Resources
Consulting firm BPO resources. Leverage a virtual, shared support model.

Our approach analyzes the IT organization/services against benchmarks
and “best practice” methods for cost reduction
Approach
Kickoff
Project
Program Management
Present
Findings
Portfolio/WIP
Analysis
IT P&P
Analysis
IT Services/
Budget
Analysis
Agree
Scope
IT
Infra/Projects
Recommend.
IT Org, R&R
Recommend.
Vendor/
Sourcing
Recommend.
IT Governance
& P&P
Recommend.
IT
Architecture
Analysis
Vendor/
Sourcing
Analysis
Cost
Reduction
Roadmap
Present
Recommend.
LaunchCostSavings

The first set of activities identifies potential savings opportunities based
on our experiences with other IT organizations
Approach – First set of activities drill down
Kickoff
Project
Program Management
Present
Findings
Portfolio/WIP
Analysis
IT P&P
Analysis
IT Services/
Budget
Analysis
Agree
Scop
e
IT Infra/Projects
Recommend.
IT Org, R&R
Recommend.
Vendor/
Sourcing
Recommend.
IT Governance
& P&P
Recommend.
IT
Architecture
Analysis
Vendor/
Sourcing
Analysis
Cost Reduction
Roadmap
Present
Recommend.
LaunchCostSavings
Agree Scope
– Set the boundaries for the reduction initiative
IT Services/Budget Analysis
– Reviewed current headcount and skills required across all IT
teams
– Review and analyze service volume metrics (i.e. help desk calls,
production releases, etc)
– Separate expenditures LODO, Maintain value, Create value
– Mapping staffing levels to benchmarks for services provided
– Identifying duplicate/overlapping responsibilities
IT Process/Procedure Analysis
– Review and analyze Release management, capacity planning,
configuration management, monitoring processes
– Identify gaps against standards required to support virtual
resource staffing
Portfolio/WIP Analysis
– Walk-through planned and in-flight initiatives
– Identify cost reductions to reduce deployment and operations
costs of new initiatives
IT Architecture/Infrastructure Analysis
– Walk-through the inventory of applications, and HW/SW in
place and current operations statistics and service levels
– Review and analyze infrastructure environment (i.e. server
counts and typed, help desk calls, desktop/laptop devices,
San storage, capacity usage, etc.)
Vendor Sourcing Analysis
– Determine goods/services required
– Identify duplication, obsolete requirements and misalignment
to business needs
– Evaluate vendors rates to benchmarks and assess use of
alternate suppliers
Present Findings
– Conduct interim readout on ‘size of the prize’
– Agree direction for recommendations

The second set of activities focuses on developing specific initiatives,
calculating cost savings, and the target timeline for realizing benefits
Approach – Second set of activities drill down
Kickoff
Project
Program Management
Present
Findings
Portfolio/WIP
Analysis
IT P&P
Analysis
IT Services/
Budget
Analysis
Agree
Scop
e
IT Infra/Projects
Recommend.
IT Org, R&R
Recommend.
Vendor/
Sourcing
Recommend.
IT Governance
& P&P
Recommend.
IT
Architecture
Analysis
Vendor/
Sourcing
Analysis
Cost Reduction
Roadmap
Present
Recommend.
LaunchCostSavings
IT Organization, Roles & Responsibilities Recommendations
– Recommendations on redefining organization and job functions
to support staff reductions and use of lower cost resources.
IT Governance & Process/Procedure Revisions
– Introduction of control procedures to reduce costs (e.g., invoice
verification).
– Revisions required to current practices and procedures to
support virtualization of common job functions.
IT Projects/Infrastructure Recommendations
– Proposed revisions to existing initiatives
– Additional initiatives e.g., consolidation, switch services/suppliers
etc.
Vendor Sourcing Recommendations
– Proposed vendor negotiations, RFP’s, etc.
– Notify existing vendors
– Identify and engage stakeholders
Cost Reduction Roadmap
– Identification, description, and business case for specific
initiatives to reduce IT costs
– Timeline and dependency between initiatives
Present Recommendations
– Readout to Executive Committee on Findings/
Recommendations and business case
Hard Easy
High
Low
Cost
Reduction
Opportunity/
Benefit
Ease of
Implementation

Implementing the service support operating model
Approach
The Virtual Shared Service Support operating model moves production support from
silos of dedicated teams, to virtual, shared resources. The goal is to standardize as
many work tasks performed by the Infrastructure Management/Production Support
teams as possible, allowing flexible deployment of resources to work tasks, when
needed.
Establish Operating Principles
and Business Case
Design and Transition to
New Organization
Implement Service
Model
• Clear definitions of development
vs. support
• Support organization ownership
of Release Management &
Production QA.
• SLA ownership to business
• ITIL-based model
• Design new procedures (Release
Management, Configuration
Management, QA, etc.)
• Define job functions, roles and
responsibilities
• Prepare and conduct training and
transition planning
• Service Desk
• Incident Management
• Problem Management
• Release Management
• Configuration Management
• Capacity Management
• Monitoring/Continuity Management

Why we are the best partner this project
Business Need & Value Proposition Slide
<FIRM NAME> uses a team of sourcing, operations, process and
development resources to lead the collaborative execution of IT cost
reduction projects.
Just as we all use external auditors to review company financial statements,
the IT cost reduction team must be independent of internal bias or
preference, and be able to bring thought diversity.
To speed the process the <FIRM NAME> team uses a proven approach,
evaluation checklists, pricing benchmarks, knowledge of other solutions and
similar tools.
Tough economic conditions make people sensitive to any actions that may
impact job security. We understand this, and collaborate with our client
sponsor throughout the project to carefully manage project communications.
IT efficiency is a core competency we use to successfully operate our
business. <FIRM NAME> has over XXs resources dedicated to applications
outsourcing of our clients IT applications and infrastructure management,
business process outsourcing and transformational outsourcing. Our client
contracts dictate a need to be innovative to deliver on the business case for
our outsourcing contracts.
Experienced
Team
Independence
Methodology
Sensitivity
Resources

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1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com

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IT Cost Reduction Sales Deck