Skip to content

business

Cost Savings

Direct answer

What is Cost Savings?

Short definition

Cost savings are measurable reductions in spending, labor time, rework, infrastructure cost, or operating overhead that result from a process, software, vendor, or architecture decision.

Why it matters
Clear cost-savings estimates help teams decide whether a software project, automation, or vendor choice is worth the investment.

How teams use Cost Savings

Use this term when you need to describe the practical role it plays in a software project.

Common use cases

  • Comparing custom software against manual operations
  • Estimating the value of automation before a build
  • Evaluating offshore, nearshore, or local development options
  • Reducing hosting or maintenance costs through better architecture

Examples of Cost Savings

These examples show the term in everyday product, platform, or operations work.

Real-world examples

  • A workflow automation saving staff hours every week
  • A PWA reducing the need for separate native mobile apps
  • Database and cache improvements lowering server usage

Related terms