Agility:

One of the most significant factors on the path to continuous optimization depends on the ability of the organization to become more rapidly adaptable to internal goals and external conditions. The challenge of optimizing IT costs isn't just about trying to reduce the unit cost of IT, but trying to keep a balance between lower unit costs and sourcing IT in a flexible way so that the organization is able to remove or add resources/costs in response to any changes, from both internal and external factors.

A common problem occurs when an organization has been significantly reducing its costs, but then finds itself in a position where the majority of its costs are fixed and on long-term contracts with vendors and service providers. The organization is then unable to reduce or remove further costs if the demand for IT reduces, unless it pays significant penalties to exit those deals. This can also restrain the ability of the organization to repeatedly increase capacity. Therefore, sourcing IT on a variable basis can form a good platform for continual optimization.

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