IT cost savings: what every CEO needs to know
Kennis
October 21, 2025
Miranda van Tellingen
Why IT costs are a boardroom topic
IT costs are no longer just an operational concern. They have a direct impact on profit, growth, and risk management.
- Direct impact on margins
Unexpected downtime or unnecessary replacement costs directly reduce profit. - Reputation and customer trust
A system outage or data breach can lead to delayed deliveries, missed sales opportunities, and reputational damage. - Sustainability as a strategic factor
Investors, customers, and partners expect companies to use resources responsibly. Sustainable hardware management can reduce costs and enhance reputation.
Strategic questions
- What is our total cost of ownership (TCO)?
Are we only considering purchase costs, or do we also account for maintenance, replacement, and downtime? - How vulnerable are we to disruptions?
What revenue is lost when systems fail—and how quickly can the organization recover? - Do we have a sustainable hardware policy?
Are devices routinely replaced, or do we extend their lifespan with repairs and refurbished equipment? - How predictable are our IT costs?
Are expenses manageable, or do outages and emergency solutions keep surprising us?
Structurele waarde creëren
- Invest in predictability
For CEOs, predictability in costs and performance is more important than the lowest purchase price. Smart service contracts, device support, and effective device management (such as Mobile Device Management) ensure stable costs and limit unexpected risks. - Extend hardware lifespan
By centrally managing devices and providing professional maintenance and support, hardware remains operational and reliable for longer. This not only saves budget but also supports sustainability goals. - Align IT with your sustainability strategy
Sustainable IT is no longer optional, it’s essential. Less waste and more efficient use of devices strengthen both corporate reputation and cost savings. - Make IT decisions based on ROI
Every IT investment should deliver a return. Focus not only on costs but on value creation: increased productivity, more reliable processes, and a better customer experience.
Responsibility for IT Costs
A CEO does not need to know which PDA or scanner is being repaired, but they should:
- Assess the financial impact of downtime and replacements
- Encourage the organization to focus on total cost of ownership (TCO) rather than just purchase price
- Embed a sustainable IT policy into the overall strategy
- View IT as a strategic tool for creating value
In short, a CEO’s role is to provide direction, set priorities, and ask the right questions to CFOs and IT managers.
Smart IT investment
IT cost savings are not about spending less, but about investing smarter. By focusing on predictability, sustainability, and ROI, companies can control IT costs while creating value.
Reverse IT supports organizations with solutions that extend hardware lifespan, make costs predictable, and reduce downtime. This makes IT not only more cost-effective, but also more reliable and sustainable.