Where IT cost reduction usually finds the money
- Software licences. SaaS true-up and rightsizing, Microsoft and Adobe renegotiations, duplicate-tool rationalisation.
- Cloud infrastructure. Reserved instance and savings-plan optimisation, storage tiering, idle resource cleanup, egress control.
- Telecoms and connectivity. Fixed line, mobile fleet, WAN and SD-WAN renegotiation and consolidation.
- Managed services and support. Right-shoring, SLA calibration and consolidation of overlapping MSP contracts.
- Hardware. Refresh cycle extension, end-user compute standardisation, disposal and recovery value.
How we deliver IT cost reduction
- 2-week baseline: contracts, usage data, roadmap review with the CIO
- Category-by-category sourcing waves, each with a benchmark and a business case
- Negotiation and supplier transition managed across the process
- Governance handed back so savings hold and do not re-inflate
Shaped around your goals
Like every Caventis engagement, IT cost reduction is scoped around what you want to achieve, with savings verified against a baseline your finance team agrees. The scope and commercials are agreed together before work starts.
Related services
IT cost reduction sits inside our broader cost reduction consultancy and often runs alongside spend analytics so the IT spend baseline is clean before renegotiation starts.
For the underlying method, read our step-by-step guide to building a defensible IT spend cube and how should-cost modelling exposes margin in software and managed services. For broader savings plays, see our overview of procurement cost reduction strategies that deliver measurable P&L impact.
Frequently asked questions
What does an IT cost reduction engagement typically cover?
Software licences (SaaS and on-prem), cloud infrastructure (AWS, Azure, GCP), telecoms and connectivity, managed services and support contracts, hardware refresh cycles, and the professional services wrapped around them. Caventis benchmarks each category, renegotiates contracts and rightsizes usage.
How much can we realistically save on IT costs?
In programmes the founder has led, IT cost reduction has delivered savings of 10 to 25 percent of addressable IT spend in year one; individual results vary. Software licences and cloud usage usually deliver the highest percentage saves; telecoms and managed services deliver the most reliable ones. Savings are always sized against your specific baseline, not a headline number.
Will IT cost reduction hurt service or delay projects?
Done well, no. The work is a mix of renegotiation (same service, better terms), rightsizing (paying for what you use, not what you provisioned) and rationalisation (removing duplicate tools). The IT roadmap and service levels are protected as a hard constraint.
Do you work with the CIO or against them?
With. Every IT cost reduction engagement is delivered in partnership with the CIO or IT director: they set the technical guardrails, we run the commercial workstream. The output is savings the CIO can defend, not cuts imposed from finance.
About Caventis
Caventis (Caventis Ltd, registered in England & Wales, company number 17158263) is a UK procurement, supply chain and cost reduction consultancy. It works with global businesses businesses to identify and deliver savings across procurement, operations and back-office spend, with every engagement shaped around what the client wants to achieve and results verified against the P&L.
The firm was founded by Matt Buckley, who leads every engagement personally, drawing on 16 years of procurement, supply chain and cost transformation experience at bp and General Motors. Matt holds an Executive MBA, two PG Diplomas in Senior Leadership and Finance, a Bachelor of Business in Supply Chain Management and MCIPS. Caventis is headquartered in the United Kingdom and serves clients internationally.
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