In Which area and how you will do for Cost Cutting for an organization ?

asadullah.ansari's Avatar, Join Date: Jan 2008
TechCake
Suppose you have power to cut down cost means cost cutting in a IT organization...Then How you will do...

For an example:
1. cut down salary of all employee ..
2. Head count ( increase recession period)

etc....

but a lot of ideas, actions where you can make your organization UP in bad time also...please give you your own idea whatever.....??? It would be appreciated....
shabbir's Avatar, Join Date: Jul 2004
Go4Expert Founder
I would suggest one thing which is Increase the marketing cost as that has become really cheap.

The more you market and can generate sales you are about to make this period pass with ease.
xpi0t0s's Avatar, Join Date: Aug 2004
Mentor
Personally I'd start cutting down on management, it's time shop floor workers, i.e. the people who actually do the work and make the company viable in the first place, stopped being first in line for the chop. Decide publicly on a 10% management headcount reduction. Then interview each one to find out why they shouldn't be cut out. Let the backstabbing begin!

Then chuck out the 10% who did the most backstabbing, because obviously if you're doing a good job and of value to the company then you don't need to bring others down. Of course, you have to keep this part secret until after all the interviews have taken place.

But yes shabbir is exactly right. Profit = income - costs, and the reason to cut costs is to increase profit. Another way to increase profit is to increase income. But income is DIRECTLY generated by the plebs so it completely defeats me as to why it's the plebs who always get the chop and not the twits who sit around drawing gantt charts all day. I've never seen a useful widget made of gantt charts.
shabbir's Avatar, Join Date: Jul 2004
Go4Expert Founder
But probably each widget made after gantt chart is maintainable when the person who has done it leaves. At least when I used to do a job My manager used to convince me saying this. If he is fired I could have done without those charts as well
asadullah.ansari's Avatar, Join Date: Jan 2008
TechCake
Quote:
Originally Posted by xpi0t0s View Post
Personally I'd start cutting down on management, it's time shop floor workers, i.e. the people who actually do the work and make the company viable in the first place, stopped being first in line for the chop. Decide publicly on a 10% management headcount reduction. Then interview each one to find out why they shouldn't be cut out. Let the backstabbing begin!

INLINE:
Right I agree... First thing reduce salary of all high level managment people(CEO,CTO, etc) and head count of high level managment also If needed.

Quote:
Then chuck out the 10% who did the most backstabbing, because obviously if you're doing a good job and of value to the company then you don't need to bring others down. Of course, you have to keep this part secret until after all the interviews have taken place.

But yes shabbir is exactly right. Profit = income - costs, and the reason to cut costs is to increase profit. Another way to increase profit is to increase income. But income is DIRECTLY generated by the plebs so it completely defeats me as to why it's the plebs who always get the chop and not the twits who sit around drawing gantt charts all day. I've never seen a useful widget made of gantt charts.
INLINE: Right...

Except that as i thought.

1. Many organization spends lot of money on corporate trainer . You can stop it by
using your own employee to find their specialization, domain expertization etc.
Pay them 10% only salary as you will pay to corporate trainer.

2. For make your bussiness more succesfully you have to keep some trained engineer
on required domain, knowledge as clients wants. So these employee till on bench
.But offcourse It's needed else no new clients will come to your organization..
But my point is that don't make this figure as much big as normally organization
are doing Just head count this figure as required only.

3. Increase the knowledge level of employee as it's very important to grow your
organization by sharing knowledge in a organization itself. By this way, you can
achieve One Employee having excellent knowledge equal to 2 or more employees
having low skill... So By this way you can make some revenues.

shabbir's Avatar, Join Date: Jul 2004
Go4Expert Founder
I would add more to it.

Its easy to fire the employee or reduce the salary because that is the most easier option for 2 reasons.

1. As the time is hard chances are less that employees would run away.
2. Get the same person to work for less