How to Save Money on IT
Saving money isn’t just about spending less or not spending at all. Avoiding embarrassment is also a real cost savings item. Another tip was — “Don’t throw your unwanted green bar reports into the building’s dumpster.” As I recall, that one came from a D.C. bank on K Street that discarded customer account activity printouts, which the shoe store on the first floor found useful as stuffing material in shipping shoes to its customers, many of whom were members of Congress. The Congressmen didn’t appreciate that as the story hit the Washington Post.
Today’s job of saving money on IT is a bit more complicated. For example, you may have to spend some money one time to get it back many times over during the life of your system.
In my opinion, there is one highly effective way to arrive at IT cost savings, aka productivity improvements. Hire your primary vendor to examine your operations in order to produce a list of corrections, refinements, enhancements and concessions. This may take some selling on a banker’s part based on a finding that popped out at me in last year’s Automation in Banking report. Of the ten popular core vendors, only three reported that they provide software consulting services for their customers. Even though the report provides a clear structure for reporting the offerings of vendors, some vendors probably overlooked consulting because it is not a product like a piece of software or a service such as transaction processing. What’s interesting is that I know these companies like the back of my hand and they all offer consulting services, sometimes referred to as professional services.




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