The difficult economic situation is affecting more and more sectors around the world, causing more and more companies to experience difficulties. Despite shrinking budgets, a new Crayon study found that the overwhelming majority (95%) of global companies fail to fully optimize their IT budgets.
A survey of over 2,000 IT decision makers (ITDM), which reflects the 171,000 layoffs made by 594 tech companies in the first few months of 2023, found that nine out of 10 companies cited optimizing IT costs as a high priority.
Looking ahead, Crayon has highlighted several key vulnerabilities to help companies get back on track and reduce spending again.
Reduce your IT and cloud expenses
According to the survey, just over a third (35%) of companies are actively evaluating their IT spending, indicating the scale of potentially wasted money that could be reinvested in something with a better ROI or saved entirely.
According to Crayon research, more companies are now turning to FinOps, rather than leaving cost decisions to their CFOs or finance teams. The FinOps method involves greater collaboration between departments to better understand, streamline and overall optimize and has been most noticeable in countries such as Singapore, Saudi Arabia and parts of Scandinavia.
The move also reflects a lack of time among senior decision makers and a lack of insight into the organization’s spending as entire business models have to adapt.
Crayon CEO Hayley Mooney explains: “Many companies don’t give [IT spending] the same type of control as other major items’.
Mooney continues, “To overcome this and weather the storm both now and in the future, organizations need to work with a partner to draw the right boundaries between different technologies and platforms, business needs, contract details and overlooked subscriptions, organizational structures, skills gaps. , and a lot more.”
This collaboration can be viewed more broadly as Big Tech comes under increasing pressure from antitrust cases and other similar alerts, leading many to suspect that a more collaborative environment with third parties may be a better solution.