Strategic cost reduction

Success story

IT cost reduction at a major Russian energy company

IT costs reduction has recently become an important issue for many companies around the world. The crisis has spread rapidly and many businesses have not had enough time to implement long-term solutions to cut costs gradually. However, a reasonable IT development strategy and IT cost optimisation help to drive future growth.

Project overview

Our client is one of the major Russian energy companies in terms of power capacity. The company was looking for a long-term information technology development strategy.

PricewaterhouseCoopers reviewed the company’s business strategy, business environment, data architecture, applications, technology and IT governance. We developed target models of applications, infrastructure and governance architecture based on the requirements of various business units. Strategic initiatives were proposed to focus on closing the gap between the existing and target models, which were subsequently translated into a detailed strategic plan.

Results

Developing this IT strategy resulted in the following deliverables:

• An IT strategy in line with the company’s business strategy
• A more positive perception of the role of IT by the business
• Prioritised projects based on strategic streamlining
• A clear understanding of the IT development path, IT infrastructure and governance
• A detailed, developed and agreed upon “roadmap” for meeting set strategic objectives

In addition to the new IT governance model, a focus on competence centres enabled the company to reduce general IT staff costs by more than 45%.