Everything has a price, but business expenses could be costing far more than what you see on paper. In addition, most businesses operate under the assumption that the only way to experience savings is to cut costs, which is not the case. Organizations can thrive by reducing their costs through optimization.
At one point in time, every organization has had to face the dreaded budget discussion and decide what to cut to have money to focus on new business goals. But what do you do if cutting the cost of any initiative will harm your business? You turn to strategy and invest in something that will add business value. According to Gartner, organizations need to consider how to reallocate resources to drive sustained cost savings and support future revenue growth.
The solution
We’ve all heard the saying “You have to spend money to make money”, which rings true for businesses. Investing back into the business in the right areas will lead to growth and increase ROI. With Virtusa’s Enterprise Cost Optimization suite, we optimize costs by focusing on the following areas:
Workforce optimization
What’s the highest cost businesses face? The people! And while the best employees are worth every penny, most organizations are blind to situations that are costing them additional money. Whether it’s duplicating efforts, manual processes taking too much time, or a plethora of other reasons, cost optimization can start with the workforce.
We help organizations with right-sizing and best-shoring resources by
- Right-skilling personnel to ensure their skills match the business needs
- Right-shoring and low-cost global talent arbitrage to determine which resources can move offshore
- Moving from pyramid to diamond labor model to better analyze the strength of the business vs. the competition
Vendor consolidation
There’s a specific fee for each vendor that a company chooses to work with and most of the time, organizations are incurring unnecessary costs.
We facilitate reduction of purchase prices, process costs, and risk by:
- Identifying and analyzing each vendor and how much they cost
- Creating standardized pricing and terms to follow for all vendor agreements
- Streamlining the governance and vendor management for increased visibility
Licensing and cloud optimization
Companies often fall into the habit of overcompensating for audits.
We minimize over-licensing by aligning spend to actual utilization through:
- Reviewing utilization and compliance
- Aligning platform architecture to licenses
- Consolidating and renegotiating agreements
Application rationalization
Unless a company is constantly auditing and optimizing their applications, some are going to fall through the cracks.
We simplify and modernize an organization’s application portfolio through:
- Analyzing for obsolescence
- Completing an assessment of technical fit, TCO, and business value
- Using functional model simplification
Intelligent process and robotic process automation (IPA/RPA)
Manual processes are costing businesses both time and money. Due to advancements in technology, many of the once burdensome processes can be automated to increase efficiency and decrease cost.
We leverage automation to help eliminate human error and create more efficient processes. We achieve this by:
- Removing redundant processes
- Automating core business processes
- Creating a zero-error rate