Reducing IT costs in 2023 means first understanding what you’re spending money on — from personnel, contractors and licenses to capital expenses. Once you know where the money’s going, you can align that to the importance of existing (and future) functions and projects. Reduce your spending on things that just don’t matter anymore — unneeded staff, underutilized consultants, excess licenses, servers that would be better in the cloud. But make sure that the places you cut won’t have a deep impact on larger business priorities.