Having spent considerable time paring back staff, consolidating servers and stor

Question

Having spent considerable time paring back staff, consolidating servers and storage equipment, rendering servers and storage equipment, renegotiating vendor contracts, and conducting selective outsourcing, CIOs are struggling to find new ways to reduce costs while still developing and implementing the new or improved business systems their companies need. In their quest to come up with even more ways to keep lid on costs, dauntless IT leaders are exploring everything from barter agreements with vendors to reselling services and joining purchasing consortiums for volume price discounts on equipment. At amazon.com, CIO Rick Dalzell followed the following strategies:

• Embrace open source

• Recognize when you have to spend to save

• Help your partners help you

• Use a tight budget as an excuse to get creative

Question:

Why are business houses finding it difficult to keep costs down in spite of the fact that technology is getting cheaper?

Explanation / Answer

Technology may be getting cheaper, but having technology means that a company needs to pay technology professionals to assist with and monitor that technology. Companies then can’t just buy technology once as they need to update the tecnology constantly which costs money.Bbusiness houses finding it difficult to keep costs down in spite of the fact that technology is getting cheaper because of the cost of the employees’ salary, benefits, needs etc. And also the expenses in the maintenance of the systems.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.