This blog explores three key strategies to achieve this: consolidating non-core functions, leveraging outsourcing and automation, and adopting cloud computing. Through real-life case studies, we showcase how digital leaders are achieving remarkable results.
Three Strategic Initiatives to Manage Cost In 2025
In the article “2025 CIO Playbook: Cost Cutting Isn’t Enough, Achieve True Cost Efficiency” three key strategies are outlined for U.S. CIOs to optimize cost efficiency amid economic uncertainty:
- Consolidate non-core functions to focus on growth.
- Leverage outsourcing and automation to streamline operations.
- Utilize cloud computing to reduce infrastructure costs.
This blog builds on these strategies with lessons from digital vanguards—organizations 1.5 to 2 times more likely to achieve their digital goals—offering practical insights for CIOs.
Real-Life Lessons for the US CIOs: Building a Cost-Effective Strategy for 2025
Consider consolidation of non-core functions to focus on growth
Teach for America (TFA), a nonprofit that places recent graduates in underserved U.S. schools, set up cross-cutting team structures to coordinate and help fusion teams manage technology, talent and other interdependencies.
- Company: Teach For America
- Industry: Education Nonprofit
- Location: United States
- Technology: Foundational digital platforms
Challenge:
Fusion teams are taking on more technology delivery roles, but CIOs often lack structures to connect these teams with platform teams. This leads to challenges in accessing support for key decisions on priorities, finance, security, and architecture.
Solutions:
- TFA merged IT and its digital product group into the Technology and Digital Experience (TDX) team, with around 100 staff reporting to the Chief Digital and Technology Officer.
- They replaced multiple apps into TFA’s OneApp, a super app that unifies all TFA program experiences, supported by shared platform teams providing essential tech capabilities.
TFA’s Integrated Technology and Digital Experience (TDX) Delivery Model (Source: Gartner)
Key Results:
- $1 Million in Reduced Expenditure: Saved $1 million in run costs, reinvesting it into digital transformation initiatives.
- 10% Increase in Employee Engagement: Achieved a 10% improvement in employee engagement scores within the TDX (IT) team.
- 4% Increase in Applicants: Boosted applicants in hard-to-fill regions by 4% and reduced response time to alumni verification letters by 99%.
Use outsourcing and automation to streamline operations
CMC Global helped a leading luxury automaker save $500,000 annually by automating 90,000 transactions across 65 showrooms and 75 service centers.
- The client: Global leader in automotive manufacturing
- Industry : Automotive
- Location: Germany
- Technology:Robotics Process Automation
Microsoft Power Platform
Challenge:
Facing challenges with manual reporting for multi-channel advertising campaigns, a leading global supplier of high-end passenger cars needed to streamline reporting across its branch network.
They sought a tech partner who could deliver high-quality, cost-effective solutions along with reliable, long-term technical support.
Solutions:
A Vietnam-based scrum team completed the project in 3.5 months, leveraging Microsoft Power Apps and the client’s familiarity with Microsoft tools to build a secure, low-code platform.
The solution standardized reports provided real-time insights via Power BI and streamlined performance evaluation.
CMCG adhered to strict security protocols, UI/UX principles, and coding standards while addressing client change requests without delays or added costs.
Key Results:
- 90,000 Transactions Processed Annually: The automated bot handles sales data from 65 showrooms and 75 service centers, generating secure, detailed reports for stakeholders.
- $500,000 Annual Savings: Automation and low-code solutions drastically reduced manual workloads, delivering strong ROI and cost savings across departments.
Leverage cloud computing to reduce infrastructure costs
CMG Financial, a leading mortgage lender, faced a challenge when its backup solution could no longer restore servers quickly enough to support homeowners’ loan documents.
- Company: CMG Financial
- Industry: Financial services
- Location: United States
- Technology: Cloud-based Data Platform
Challenge:
CMG Financial simplifies home loans with online services and a mobile app. However, they faced challenges with slow file and server recovery, risking homebuyers losing access to loan documents
Solution:
CMG Financial developed a fast, reliable recovery, secure backup and replication, proactive monitoring, and advanced ransomware protection.
They have successfully backed up nearly 1PB of data both on-premises and to Azure and Azure Archive. Three sets of immutable backups in different locations enhance cyber resiliency, ensuring data can be restored anywhere within the IT infrastructure.
Key Results:
- 96% Faster Server Restores: Ensures quick online access to loan documents for homebuyers.
- Immutability for Cyber Resiliency: Provides flexibility to restore any data, anywhere, with enhanced security.
- $300,000 in Savings: Reduced backup, recovery, and support costs by $300,000 over three years.
How CMC Global Can Drive Your Success
At CMC Global, we help U.S. organizations achieve cost efficiency and sustainable growth with innovative digital solutions.
Our Services
- Automation Solutions: Develop RPA and low-code/no-code platforms to streamline operations and reduce costs.
- Cloud Transformation: Optimize infrastructure costs with seamless integration across AWS, Azure, Google Cloud, Databricks, and Snowflake.
- Tailored Digital Transformation: Harness disruptive technologies like AI, data analytics, and ERP systems to enhance operational efficiency.
Partner with CMC Global to navigate the challenges of 2025. Let us help you maximize ROI, reduce costs, and drive growth.. Contact us today to learn more.
