{"id":619361,"date":"2023-08-23T14:21:31","date_gmt":"2023-08-23T14:21:31","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?p=619361"},"modified":"2025-09-25T14:48:44","modified_gmt":"2025-09-25T14:48:44","slug":"rethinking-cost-optimization-from-cutting-corners-to-fueling-growth","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/gb-en\/insights\/expert-perspectives\/rethinking-cost-optimization-from-cutting-corners-to-fueling-growth\/","title":{"rendered":"Rethinking cost optimisation: From cutting corners to fueling growth"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>Rethinking cost optimisation: From cutting corners to fueling growth<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Mark-Standeaven-headshot.jpg?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Mark Standeaven<\/h5><h5 class=\"blog-date\">Aug 23, 2023<\/h5><\/div><\/div><div class=\"brand-image\"><\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/gb-en\/?p=619361\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-tw\"><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https:\/\/www.capgemini.com\/gb-en\/?p=619361&amp;text=\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-tw\"><\/i><span class=\"sr-only\">Twitter<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/gb-en\/?p=619361&amp;text=\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<p>Ever wondered if the tried and tested way organisations navigate the volatile economic landscape &#8211; slashing budgets and cutting costs &#8211; is the most effective? The sentiment is understandable. We all grapple with surging costs &#8211; rising mortgages, soaring living expenses, and salaries that lag behind inflation. Add to that the relentless uncertainties of global macroeconomics \u2013 wars, cyber threats, and unstable supply chains. It&#8217;s no wonder cost-saving measures have become the dominant theme during my interactions with insurers.<\/p>\n\n\n\n<p>When organisations sense an economic pinch, they instinctively resort to familiar cost-cutting measures: downsizing the workforce, squeezing assets, and deferring new investments. While these provide momentary relief, it is not sustainable in the long run. A market upturn could be just around the corner in an era where financial cycles quickly adapt to our ever-changing circumstances. The term &#8220;you can&#8217;t shrink to greatness&#8221; rings particularly true here. The pressing need to grow and expand soon eclipses any immediate cost relief. The task of rebuilding what you&#8217;ve lost can be daunting.<\/p>\n\n\n\n<p>It&#8217;s time we considered an alternative approach: a more comprehensive cost optimisation strategy. This strategy provides quick fiscal relief while preserving and enhancing future growth opportunities.<\/p>\n\n\n\n<p>The proposed framework pivots around three fundamental dimensions:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Operating Model:<\/strong> Focusing on optimal task performance and assigning the right people to ensure efficiency and effectiveness. Consider establishing a cost-efficient global IT supply chain centred on a strategic captive centre.<\/li>\n\n\n\n<li><strong>Modernisation:<\/strong> Identifying the drag that certain assets, applications, and infrastructure impose on an organisation&#8217;s ability to deliver value and exploring ways to modernise them. If your technical debt is so high that it&#8217;s inflating operational costs and impacting investment in new features, a modernisation strategy based on domain-driven design, advanced AI automation, and cloud migration could be the solution.<\/li>\n\n\n\n<li><strong>Waste Elimination:<\/strong> Pinpointing duplication and low-value tasks in the IT portfolio and rationalising, automating, or eliminating them. Are there duplicate policy administration systems in your landscape that could be removed through rationalisation?<\/li>\n<\/ol>\n\n\n\n<p>Blending these various strategies into a comprehensive initiative program can create a cycle of continual savings. An example is a well-executed FINOPS initiative, which can generate initial savings that subsequently fund the commencement of a decommissioning factory, leading to significant savings by removing legacy and debt-ridden applications.<\/p>\n\n\n\n<p>So, let&#8217;s shift the conversation from cost-cutting to cost optimisation, a way to pave the path for future growth. Are you ready to rethink how you approach your costs? I&#8217;d love to hear your thoughts and start a dialogue that could redefine your financial strategy.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"section section--expert-slider wrapper-people-slider wp-block-cg-blocks-wrapper-people-slider undefined\"><div class=\"container\"><div class=\"content-title\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Author<\/h2><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Mark-Standeaven-headshot.jpg\" alt=\"Mark Standeaven\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"subnav-button--form\" href=\"javascript:void(0)\" aria-label=\"contact us\" data-bs-toggle=\"modal\" data-bs-target=\"#WPBd557e9e9_544f_4369_a134_0621ab03f059\" data-bs-expert-title=\"1\">\n\t\t\t\t\t\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"ico-form\"><\/i>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/mark-standeaven-7124945\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Mark Standeaven<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Executive Vice President \u2013 Global Cost Optimization and Transformation Leader<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/mark-standeaven-7124945\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">Mark is an Executive Vice President in our Insurance BU with over 36 years of experience in the IT industry, including 18 years in the Finance sector. During his career, he has held roles spanning the full range of IT disciplines, from engineering and architecture to, more recently, CxO advisory. For the past 7 years, he has advised board-level client teams and led transformation initiatives to optimize client operating models, drive sustainable cost reduction and increase organizational agility.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div><\/div><\/div><div class=\"slider-nav\"><button class=\"slider-prev inactive\" aria-label=\"Slider-previous\" tabindex=\"-1\"><\/button><ul class=\"slider-paginator\"><\/ul><button class=\"slider-next\" aria-label=\"Slider-next\"><\/button><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-learn-more updated-new-sample-amal learnMoreBlock\"><div class=\"container\"><div class=\"content-title\"><h2 class=\"learnmore-heading\">Our Expertise<\/h2><\/div><div class=\"row\"><div class=\"col-md-4\"><div class=\"box\"><div class=\"box-wrapper\"><a class=\"box-title\" href=\"https:\/\/www.capgemini.com\/gb-en\/industries\/banking-and-capital-markets\/\" target=\"_blank\" aria-label=\"Banking and Capital Markets\" rel=\"noopener noreferrer\"><div class=\"box-img-wrapper\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Capgemini_Industries_Capital-Markets.webp?w=500&amp;quality=70\" srcset=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Capgemini_Industries_Capital-Markets.webp?w=500&amp;quality=70 1x, https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Capgemini_Industries_Capital-Markets.webp?w=1000&amp;quality=70 2x\" class=\"box-img\" alt=\"\" style=\"object-fit:cover;object-position:50% 50%\" loading=\"lazy\"\/><\/div><h3 class=\"titleWithoutLink_learnMore\">Banking and Capital Markets<\/h3><\/a><\/div><\/div><div class=\"box-inner\"><\/div><\/div><div class=\"col-md-4\"><div class=\"box\"><div class=\"box-wrapper\"><a class=\"box-title\" href=\"https:\/\/www.capgemini.com\/gb-en\/industries\/insurance\/\" target=\"_blank\" aria-label=\"Insurance\" rel=\"noopener noreferrer\"><div class=\"box-img-wrapper\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Capgemini_Industries-Insurance-e1649147468324.jpg?w=500&amp;quality=70\" srcset=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Capgemini_Industries-Insurance-e1649147468324.jpg?w=500&amp;quality=70 1x, https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/08\/Capgemini_Industries-Insurance-e1649147468324.jpg?w=1000&amp;quality=70 2x\" class=\"box-img\" alt=\"\" style=\"object-fit:cover;object-position:50% 50%\" loading=\"lazy\"\/><\/div><h3 class=\"titleWithoutLink_learnMore\">Insurance<\/h3><\/a><\/div><\/div><div class=\"box-inner\"><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Ever wondered if the tried and tested way organisations navigate the volatile economic landscape &#8211; slashing budgets and cutting costs &#8211; is the most effective? The sentiment is understandable. We all grapple with surging costs &#8211; rising mortgages, soaring living expenses, and salaries that lag behind inflation. <\/p>\n","protected":false},"author":189,"featured_media":636785,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"{\"uuid\":\"c881e758-1f63-496d-9f52-aee2a64e98d5\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"_yoast_wpseo_primary_brand":"30","_jetpack_memberships_contains_paid_content":false,"footnotes":"","featured_focal_points":""},"categories":[5],"tags":[226,247,584],"brand":[30],"service":[],"industry":[],"partners":[],"blog-topic":[509],"content-group":[],"class_list":["post-619361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-economics","tag-finance","tag-growth-strategy","brand-capgemini","blog-topic-financial-services"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rethinking Cost Optimization<\/title>\n<meta name=\"description\" content=\"A market upturn could be just around the corner in an era where financial cycles quickly adapt to our ever-changing circumstances.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.capgemini.com\/gb-en\/insights\/expert-perspectives\/rethinking-cost-optimization-from-cutting-corners-to-fueling-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rethinking cost optimisation: From cutting corners to fueling growth\" \/>\n<meta property=\"og:description\" content=\"A market upturn could be just around the corner in an era where financial cycles quickly 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