IT firms advised to appoint accountants to save costs

News Article - 05 March 2008
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IT organisations could significantly reduce their costs and improve their business health by appointing a senior accountant or auditor to carry out accurate monitoring of the effects of cost reduction strategies, a new report states.

Analyst Gartner has produced a series of new guidelines that are intended to help IT organisations to improve their bottom line.

The guidelines also advise firms to assign top performers to cost-cutting exercises and streamlining processes, with bonuses based on success.

According to Gartner, management reportingis key to cost cutting and reports should be posted to senior managers weekly that identify where savings have been made.

Investing in good business and accounting software can help firms to improve the effect of cost-cutting programmes and more efficient business processes on both their IT and wider enterprise budgets.

Ken McGee, vice president of Gartner, said: "Last October we published research recommending that organizations should prepare two IT budgets for 2008, the first reflecting guidance already provided by senior decision makers and a second 'backup' budget assuming the need to cut costs in response to the arrival of a business slowdown."

Analyst Research and Markets reports that IT departments should make provision in their budget for energy expenditure in order to encourage firms to explore green ways of reducing costs.

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