ELEGANT IT INSIGHTS / CIO ADVISORY
How commission-based CIO cost reduction works
Learn how a CIO-led IT cost review works when fees are linked to savings, from agreeing the baseline to checking the bills after implementation.
Elegant IT ·
One supplier is due to renew, software subscriptions are spreading across departments and nobody has a clear view of the total bill. A CIO-led review can bring finance, IT and procurement together to decide where to spend less and which services need protecting.
Agree what counts as a saving
Start with the existing spend and the services it buys. Agree which contracts and systems are in scope, the period over which you’ll measure results and how changes in headcount or usage will be handled. Cancelling a licence because someone left is a different outcome from paying less for the same service.
Separate the forecast from the result
Imagine a supplier contract costs £60,000 a year and a comparable replacement costs £48,000. That’s £12,000 in annual recurring savings. If switching costs £4,000, the first-year saving is £8,000 before the review fee, assuming the new price applies for the full year. Agree up front whether commission is calculated on recurring savings, first-year net savings or another basis. Then check actual invoices against the agreement.
Use senior judgment to decide what to change
The lowest quote may exclude services your team relies on. An experienced CIO can compare support coverage, identify dependencies and help negotiate a better deal. You decide which recommendations to implement and what level of risk is acceptable.
With Elegant IT’s commission-based CIO cost reduction service, the commission percentage, scope and qualifying savings are agreed before work begins. Bring your current spend and upcoming renewals to the first conversation.