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Key Steps Involved In Balancing IT Cost & Service Level

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◎Setting Up
1. Establish E2E service cost maps and standardized service level definitons (e.g.,price and level catalogs
2. Set top-down efficiency im provement targets by BU and/or individual service lines
3. Initiate regular business/IT discussions on service level / cost trade-offs
4. Ensure sanity check by business leadership to avoid adverse customer impact /reaction
◎...and keeping it running
1. Periodically review preformance against top-down targets and use business/IT management compensation schemes to reward efficiency improvement.
2. Use external cost benchmarking, e.g.,with Gartner, IDC, to reset level of aspirations as evolving technology pushes efficiency curve down
3. Stimulate E2E cost ownership by business/operations when ever approiate


(Reference and lesson learned from some PROJ)

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