Reduce IT costs without slowing the roadmap.
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 end-to-end
- Governance handed back so savings hold and do not re-inflate
Commercials aligned to results
Like every Caventis engagement, IT cost reduction is delivered on a shared-savings basis - a small contingent fee funds mobilisation and the majority of our fee is tied to realised, P&L-verified savings. If the savings do not land, the majority of the fee is not paid.
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.
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?
Typical realised savings sit at 10-25% of addressable IT spend in year one. 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.
Reduce IT costs without cutting capability.
Start with a 2-week IT cost baseline - fixed scope, no obligation.