The Ops4Less model of IT Operations cost control:
P A I D ™
Get the right people, get the people right
Do the right things, do things right
Spend to save money, save money on spending
Manage the business, the business of managing money
"An engineer does for a dollar what any fool can do for 10" ITILopia
I've recently spent some time with a small IT Operations team. Earlier this week, the team leader reminded all the engineers to update their time-sheets.
Keep service level reporting simple - black box it. No need for complex monitoring solutions, at least not initially.
Be careful of the way paid KPIs can unexpectedly distort behaviour: make sure you are paying for what you want (they won't do the wrong thing) and all of what you want (they won't neglect some right things).
Also out now, a new book The IT Skeptic Looks at CMDB
Available as a digital download for $7.95 or a book for $9.95+p&p