Cost 2.0: Top Tips to Transform Your Cost-Saving Strategy

Cost saving has always been a focal point within the shared services industry, and 2024 appears no different. In a time defined by global economic challenges, innovative yet costly technology, and an ever-changing workforce, thinking strategically about costs is as important as ever. 

Jan Nikus, Vice President of KONE Business Services, highlights a shift from short-term "cheese slicer cost savings" to cost management that is timely and that is "proactively optimiz[ed]  longer term." As Arpitha Shetty notes, "the focus should not just be about streamlining processes, but also adding value to the enterprise. This added value then brings about cost savings." 

In the latest report from SSON, we dive into some examples of how organizations can leverage a more strategic, long-term cost-saving strategy. 

Readers of the report will walk away with the following takeaways:

• IT Financial Management: Ensuring IT frameworks are tailored to the business, can allow for the removal of redundant IT resources and consequently lowering costs. 
• Generative AI: This innovative technology is at the forefront of industry leaders' minds and is often considered a costly investment. However, through time efficiency, reduced human error and increased customer satisfaction, generative AI could contribute well to a cost-saving strategy. 
• Outsourcing: Although by no means a new concept within the shared services industry, the report highlights how using third-party providers can reduce costs. From economies of scale to more predictable costs, outsourcing remains a valuable investment for businesses. 
• Resource Management: Effectively managing human capital within an organization can help fully leverage hard-to-find talent. This can reduce labor costs as existing employees are able to reach their full potential, instead of hiring more talent.