Facing Budget Cuts, Higher Education Should Rethink IT Spending, Says Info-Tech Research Group

With increasing pressure to tighten budgets, many higher education institutions risk making costly mistakes through reactive spending cuts. Info-Tech Research Group's new blueprint is designed to help IT leaders take control by aligning stakeholders, identifying inefficiencies, and implementing cost-optimization strategies that deliver sustainable results.

TORONTO, July 7, 2025 /CNW/ - Ongoing funding cuts and shifting enrollment patterns are forcing colleges and universities to make tough financial decisions. Many are caught between the rising cost of maintaining outdated systems and the growing need for digital modernization. These pressures often lead to inconsistent IT planning, unclear priorities, and wasted spending. To help institutions find a more sustainable path forward, Info-Tech Research Group has published a blueprint, Build Your IT Cost Optimization Roadmap for Higher Education, that details a practical and strategic approach to managing IT costs.

The guidance outlined in the firm's resource is designed to help higher education IT leaders identify what truly delivers value, address inefficiencies, and move forward with greater financial clarity in an uncertain environment.

"Public trust in the value of higher education is declining, with many now seeing colleges and universities as institutions that reinforce inequality rather than promote social mobility," says Mark Maby, principal research director at Info-Tech Research Group. "Rising tuition costs and growing student debt, especially for students from lower-income backgrounds, are widening existing economic gaps. At the same time, leadership and governance are facing intense pressure, as political scrutiny increases and college presidents navigate increasingly complex challenges. Given these pressures, reducing spending across organizations is inevitable."

Cost Optimization Requires a Broader Strategy

Info-Tech's newly published resource details that many higher education institutions take the wrong approach to cost optimization. According to the data-backed blueprint, quick top-down budget cuts made under tight deadlines often create more problems than they solve, especially when there is a lack of alignment and collaboration among stakeholders. Maby, an expert in higher education technology, explains that cost optimization is not simply about cutting expenses but instead focuses on three strategic goals:

• Reduce unwarranted IT spending: Take immediate action to eliminate waste and show early progress.
• Optimize cost-to-value: Ensure each dollar spent aligns with performance, risk, and strategic goals.
• Sustain cost optimization: Embrace a continuous process of reducing, reusing, recalibrating, and repeating these efforts.

Notably, according to data from Info-Tech's IT Management & Governance Diagnostic, 58% of higher education institutions report that their cost optimization efforts are ineffective, highlighting the need for a more structured and sustainable model.

The Build Your IT Cost Optimization Roadmap for Higher Education blueprint encourages higher education IT leaders to determine their current position on the cost optimization journey – whether reactive, proactive, or strategic – and assess their IT spending across the following four key areas:

Assets: Consolidate, integrate, or decommission assets and licenses.

Vendors: Review, evaluate, and renegotiate contracts and vendors.

Project Portfolio: Manage projects by rationalizing and prioritizing IT initiatives.

Workforce: Manage staffing resources through upskilling, realignment, or reduction.

As financial pressures intensify, Info-Tech's blueprint offers practical guidance for IT leaders to manage costs while supporting long-term institutional goals. The firm's resource also stresses that the "90% of the budget you keep is more important than the 10% you cut," reinforcing that optimization is not about arbitrary slashing but strategic preservation and reinvestment.

Cost optimization should be approached creatively and strategically, not as a one-time exercise, but as an ongoing commitment to driving value and resilience in the face of uncertainty.

For exclusive and timely commentary from Mark Maby, an expert in the educational sector, and access to the complete Build Your IT Cost Optimization Roadmap for Higher Education blueprint, please contact pr@infotech.com.

About Info-Tech Research Group

Info-Tech Research Group is one of the world's leading research and advisory firms, serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

To learn more about Info-Tech's divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact pr@infotech.com.

For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.

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SOURCE Info-Tech Research Group