Thorough understanding of Cost components in the key. Any cost optimisation project must not hit the root from which the overall service delivery value chain gets nutrients. Focus should be on short term and non essential cost. Service organisations should not be burdened with high overhead and that gives flexibility to work with variable cost. Clear and transparent communication at all level must be carried out during tough times.

Promote awareness-raising activities and share the current situation with the entire team, and dialogue about the need for everyone's engagement to overcome this challenge.

Cost Cutting measures often proves to be a lagging factor, however following can be done to keep the effect minimum: - Be transparent to the team - Categorize the events whether it is value adding or non value adding and implement cost cutting accordingly - Solution makers : Involve the team to implement Kaizen which as cost efficient and make an inclusive work environment

increase awareness to the team members regarding impact of the efficiency, in the other hand we have to put understanding that we have to kept the quality of work that have to be done.

Make sure the team's morale is not just tied to their daily responsibilities but also to the social activities and engagement on the team. I can't do 'A', but at least I have 'B'. Then,start by explaining in a most straightforward way where the cuts are coming from and why. If it impacts your people - give them as much notice as possible to allow them to find something else, either internally or externally. Reassure the stability and progression for the ones that are not impacted. If the impact is on software, vendors and benefits - work with your team to see the half glass full. Emphasize what's not impacted and help folks focus on that.

Want to ensure that your team is less resistant? Be transparent when there is a need to cut costs. Create a sense of ownership with staff and engage them in finding the best places to save money. Their ideas may surprise you! But when times are more profitable show your appreciation to that same staff. You will keep good people for many years by showing them that you value them. A company that contributes to the lives of its staff and the community around it, as it meets the needs of clients, serves a good purpose. A business that exists purely for profit and growth of itself as an entity, is a tumor.

From my experience in Service Delivery and cost reduction, resistance to cost-cutting initiatives is common. To overcome this, it’s vital to align tactical and strategic goals. Tactical activities should be integrated into team KPIs, with training on cost-cutting measures, reporting, and performance evaluation tied to rewards. On the strategic front, assess operating models, locations, and staffing structures. Collaborate with consulting firms to identify data-driven areas for improvement and cost reduction. This approach enables informed, inclusive decision-making, capitalizing on quick wins and long-term gains.

Clear communication is crucial in any implementation being carried out by employers. Management needs to ensure the reason behind the exercise and the measure needed to carry out in a very professional manner as well as without any bias. Being transparent with employees will increase the chance of accepting the measure and minimizing the effect to the rest of organization

The first thing is to ensure that the team is clear as to why there is cost cutting. Limited resources imply newer solutions that must be co-created with the team. Solutions should be 80/20 so that the most critical customers don't feel a big hit in service delivery. The tail customers should be managed by leveraging technology, as the touchpoints needed are lower than those for high-profile accounts. It is also important to communicate the new model to the customers so that they are not surprised.