Nov 05

Well, even though this is the topic for this section of Steria blog, I’m sorry to say that cost reduction is a bit outdated.

Why? Because both clients and their IT partners have been working on how to reduce costs for quite some time. Both have now a mature approach to that topic. What they now need to do is to focus on the financial performance of their IT projects, and this is a much wider topic than cost reduction.

How can they do that? By implementing a shared economic model in between the client and the IT provider, that allows the measurement of the project’s financial performance. The key issue to be handled is the definition of Service Level Agreements that must combine business and IT ones.

IT SLAs cover the Total Cost of Ownership; the business ones measure the added value delivered to the client and are related to the clients’ core activity.

Such a financial performance tool gives shape to the planning of the performance commitment, by year, by factor of improvement and by system.


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