Businesses have had to adopt liquidity planning and cash conservation to create a financial runway
Proper classification of core vs. context activities and exploring newer engagement models can create efficiencies in outsourcing
News provided by Zinnov Jun 19, 2020, 17:00 ET Via www.PRNewsWire.com
SANTA CLARA, California, June 19, 2020 /PRNewswire/ — Zinnov, a leading global management and strategy consulting firm, released the findings of its rapid cost takeout study, focused on Engineering and IT organizations. The study helps empower business leaders to make informed decisions in their cost optimization measures, particularly in the current volatile, uncertain, complex, and ambiguous business environment, brought on by COVID-19.
The Zinnov study revealed that organizations can achieve up to 20% savings by focusing on three essential cost levers – Globalization, Outsourcing, and Product Portfolio Optimization. Globalization is the strategy where an organization expands its geographical footprint by setting up global centers in key locations. Globalization can potentially save up to 15-20% of costs for an organization by aligning roles and skills to current business needs, optimizing talent and location strategy, and redistributing talent from high-cost to low-cost locations.
Organizations are witnessing a fundamental shift in the demand for certain skills and roles, in the wake of the ongoing pandemic, such as cybersecurity experts, security engineers, privacy engineers, sales roles, etc. Further, globally distributed, mature teams eliminates the dependency on one particular location, thus ensuring business continuity. With acute cost pressures come rapid cost optimization measures in the form of talent redistribution from high-cost to low-cost locations. Additionally, global centers should be leveraged to operate as multi-function centers to achieve further cost savings.
