ICT Cost Out project saves Public Sector Organisation over $400k per year

Optimation was engaged by a Public Sector Organisation identify and realise cost savings from two major ICT services contracts. Taking a pragmatic approach, Optimation delivered quick wins by focusing on billing anomalies as well as on understanding factors that were causing rising demand and driving up costs.

Business Background

Providing a wide range of services to the general public and to specialist stakeholder groups, the Public Sector Organisation; operates in collaboration with multiple other public, private, and community-based organisations; and carries a number of critical responsibilities. With a presence in most New Zealand communities, it is sensitive to the need to continually demonstrate it is delivering value for money to New Zealanders.


The organisation had recently embarked on a programme to reduce costs in its ICT function over the next three financial years. Facing a challenge of how to actually take good ideas for savings and make these happen, the organisation faced a challenge to achieve its cost savings goals. Optimation were engaged to conduct a practical review of two key ICT contracts. The intention being to identify cost inputs and manage these appropriately so that costs do not continually increase.


Our team took a pragmatic approach demonstrating a clear solution methodology to identify and realise cost savings. We focused on billing and also worked to understand the nature of the rising demand that was driving up costs.

We began by tackling the CMDB, which had not been subjected to an audit for several years. A national audit was considered too expensive and impractical within the timeframe, so the Optimation team instead focused on the large amount of equipment the CMDB recorded as being in the ‘warehouse’. We were not confident that this data was accurate, but, through systematic analysis we were able to identify and remove over 3000 non-existent items from the CDMB. An audit of printers at head office also identified a large number of machines unable to be located, and these too were subsequently removed from the CMDB.

Analysis of another large contract uncovered a systemic nationwide problem with decommissioning users once they had left the organisation. By cross-referencing line information for individual users with the organisation’s HR and Active Directory data, we were able to identify and remove over 800 inactive user accounts and thus reduce the costs being incurred. By highlighting issues in the decommissioning process, we have also provided the opportunity to improve internal procedures to better manage future costs.

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Within a short period, the Optimation team were able to identify and implement cost reductions amounting to over $400,000 per annum. This was achieved with no disruption to staff or business-as-usual operations.