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Managing the IT cost challenge

The economic downturn has forced companies to dramatically reduce their production capacity and to lay off staff in both operational and non-operational functions. This trend has also reached the IT function: CIOs are accelerating their efforts to reduce IT costs, which – depending on the industry – may account for over 10% of operating expenses. Our benchmarking experience reveals substantial differences in IT cost ratios among industry peers – in some cases beyond 30%. At the same time, IT value creation is often not fully visible to the business.

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