Is a Recession Coming? Here’s How to Cut IT Costs Wisely
Spokesperson : Swami
As economic indicators turn ominous, it's a good time to consider how to trim engineering expenses so your organization emerges strong in the recovery.
A growing number of financial experts predict that a global economic slowdown — possibly a recession — is on the way. As CEOs prepare for an economic decline, they’ll be asking their chief technology officers and IT managers to cut costs.
The news is grim — thousands of tech employees have been laid off this year, and more companies are announcing plans to make hiring cuts:
In June, Tesla CEO Elon Musk reported having a “super bad feeling” about the economy and announced plans to cut 10% of his company’s salaried staff.
Coinbase recently announced that it’s laying off 1,100 employees, or 18% of its workforce.
Several big tech companies, including Microsoft and Meta, are slowing down or freezing hiring.
Reassess What You Have.
A zero-base approach in which each expenditure is evaluated based on actual need or cost can help identify money-saving opportunities within an organization.
“Re-evaluating unused and underutilized assets can help IT significantly reduce capital expenditures,” said Swaminathan Kasiviswanathan, senior director, DevOps at Kissflow, a work-management platform. “For example, if you have a virtual machine that has not been used for the last six months, that obviously tells you it’s an unneeded resource.”
A company can confidently downscale assets that are running at less than 10% to 20% utilization, he said. “This downscale doesn’t need to be drastic but can be done in a phased approach.”
Read this detailed piece here