For many retailers, and particularly their IT and Finance Directors, looking at costs in a far deeper way can be a revelatory experience. Only by gaining a true appreciation of what are fixed costs and what are variable can you reveal and plan for change: improving in-house practices, working with an outsourcer, or using a mix of internal and external resources can all mean you pay less. In a shrinking market, retailers have to make sure their operations in all areas are as lean as possible. To remain relevant and continue adding value, the priority in IT now is to reduce how much it costs, and to do that fast. If retailers don't take action soon, their essential and increasingly expensive IT could end up being a millstone around their neck.

About the Author:

Alan Morris is the Managing Director of Retail Assist.