IT cost optimization (ITCO) is a method of determining the overall value of IT systems and software products to achieve business goals and objectives. Most modern firms have a false goal of lowering information technology costs. Many companies find themselves in this scenario as a result of over-purchasing and under-utilizing older tech solutions that no longer meet their current technology needs. Organizations that are serious about expansion should reinvest in a more flexible, cloud-based operating model and adopt a strategic cost-transformation plan. As companies are being urged to improve their digital capabilities by investing in transformative technologies that speed up digital innovation and disruption, immediate one-time steps to lower tech expense levels can’t work in this situation. That’s why, businesses must embrace more creative cost-cutting efforts that enable them to realign budgets and generate long-term savings