Traditional approaches to cost optimization are still good hygiene, but today remaining competitive requires AI-driven cost transformation. We address three levels of cost optimization, identifying quick-win and deep-potential opportunities and working toward both simultaneously. ISG helps our clients achieve fast, sustainable savings through AI-centered expert advisory, market data and insights, and execution support.
The final method is a cost transformation of your business' operating model for agility, resulting in cost transparency. Using zero-based budgeting to stay goal-aligned, AI to accelerate the business, and change management to empower your people, you can continuously optimize costs to stay competitive.
An intermediate method, cost substitution, involves operating model substitution usually through outsourcing, global capability centers, and/or AI and automation to drive sustainable cost resets.
Think of traditional cost trimming methods as pushing down on a balloon - often, this causes another area to bulge because it's not addressing the big picture. Cost trimming is transactional - good to achieve quick wins, but it should be implemented as part of a holistic cost optimization program.
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We believe that you can't manage what you don't measure. The first step to achieving optimized costs is knowing where you are mis-aligned with the market and your goals.
We perform a rapid, holistic market assessment of your IT and business functions looking for opportunities in four areas by asking:
We build a transformation roadmap prioritizing your cost optimization opportunities, a business case with an operational expenditure (OpEx) view, and a future-state operating model design.
We execute the transformation plan to realize phased savings, leveraging strengths in organizational change management, operating model design, sourcing and market data/research.
How do you know your project costs are reasonable and being controlled appropriately?
We simplify project cost and effort estimation, preventing scope creep with rigorous controls and governance, providing you with:
Saving shouldn’t compromise your growth. That's why ISG aligns cost optimization with your top-line business strategy, ensuring the program enables, and never hinders, your next move. We help you achieve sustainable savings that won't have cost bounce backs by integrating a cost optimization center of excellence into your company DNA. And our results speak for themselves:
Software and Cloud, Network and Telecom, Service Providers
20% TO 30% OF SPECIFIC EXTERNAL SPEND IN SAVINGS
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Contract Governance, Telecom Audit, Software Audit Defense
10% TO 35%* OF APPLICABLE EXTERNAL SPEND IN SAVINGS
*For software audits, we see savings <95% of applicable external spend
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Managed Services Sourcing, GCCs, Automation
20% TO 50% OF OVERALL COST AREAS
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Software Asset Management (SAM), FinOps, Technology Business Management (TBM), Project Estimation and Controls, or Application Rationalization
15% TO 30% OF SPECIFIC COST AREAS
ISG is a leader in proprietary research, advisory consulting and executive event services focused on market trends and disruptive technologies.
Get the insight and guidance you need to accelerate growth and create more value.
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