1% IT in Aerospace and Defense - Reducing Costs While Increasing Capability

How leading-edge A&D firms can achieve a step change in performance, delivering higher value to the business with an efficient cost structure approaching 1% of revenue.

The IT organization increasingly finds itself caught between opposing imperatives—being encouraged to provide greater support to the business while being ordered to cut costs. This is particularly true in the aerospace and defense (A&D) industry, where companies are turning to cost restructuring in the face of expected budget downturns while maintaining or increasing the demands on IT.

In response, some IT organizations have achieved a step change in performance, delivering higher value to the business with a cost structure approaching 1 percent of revenue.  An IT organization that can transform its operating model to act as both a cost center and a strategic enabler will be poised to manage not only the cyclicality of the present but the growth needs of the future as well.

Booz Allen Hamilton's Jeff Bloom and Mike Jones are the authors of "1% IT in Aerospace and Defense – Reducing Costs While Increasing Capability"

study posted March 26, 2008