'CIOs Should Work Closely With Business To Drive Benefits'

India Inc is taking various measures to dilute the effects of the global slowdown. From layoffs to salary cuts to axeing travel and entertainment perks, all the possible tools of cost cutting are being employed. Amid such a scenario, Biztech2.0 caught up with Dhiresh Rustogi, executive VP – IT, Kotak Mahindra Life Insurance, to know how IT can play a role in cost rationalisation.

How is the company planning to rationalise costs while carrying forward its expansion plans? Which are the areas of focus?

As IT heads, we are looking to renegotiate with vendors and removing the slack, trying to identify better ways of providing IT services with reduced overheads and questioning the need for all expenses. Expansion and cost rationalisation is definitely the mantra for the current scenario. As a company, we always were very cost conscious and expansions were done carefully. Now we are looking at our expenses with a finer comb and doing away with all ’nice to have’ expenses.

More from Biztech

Future Group - Reliance Retail Deal approved by CCI RBI ban on cryptocurrencies takes effect; prohibition could force investors to tap the black market

In wake of the current slowdown, how do you view the business and IT working together?

In the current scenario, there is a major credit crunch, which means that funds availability will be costly and fund utilisation will have to be done very prudently. This means CIOs will have to work more closely with the business to drive benefit for every possible rupee invested. This phase can be utilised prudently by CIOs by consolidating, reprioritising and taking a deep look at all business activities. During a high growth phase, business tries to achieve numbers; however, this may not be done in best and cost effective manner – this is when IT is working in fire fighting mode. In a consolidation phase, IT can take a step forward and work with the business to provide cost effective mechanisms.

How is the crisis affecting the IT spends?

IT spends will definitely get impacted and more focus will be on the areas where return on investment is high. ‘Nice to Have’ and ‘Good to Have’ items will take a back seat. Projects, which are short and quick and immediately display benefits to the business, will be the need of the hour.

What will be your immediate strategy to tackle the crisis?

Our strategy is to use this window to develop better relationships with the business at all levels in the organisation, to encourage discussions on how things can be done in a more cost effective manner with the help of IT, to sit with business to prioritise all IT projects and to work towards making their need-of-the-hour a reality. We have to make IT deliver what the business needs most at this time.