Latest news with #costoptimization
Geeky Gadgets
06-08-2025
- Business
- Geeky Gadgets
How To Cost Optimise Your AI App : Cut AI Costs by 80% Without Sacrificing Performance
What if your AI app could deliver top-tier performance without draining your budget? For many developers, the excitement of building with advanced models like GPT-4 quickly turns into frustration when operational costs spiral out of control. Imagine launching a feature only to discover that a single user request triggers a cascade of unnecessary tool calls, inflating costs by 10 times your initial estimate. It's a common scenario, but here's the good news: with the right strategies, you can achieve up to 80% cost savings without sacrificing accuracy or reliability. This primer is your guide to making your AI app not just smarter, but leaner and more efficient. In this walkthrough, Chris Raroque shares actionable techniques to help you identify hidden inefficiencies, optimize resource allocation, and rethink how you use language models. You'll learn how dynamic system prompts and smarter model selection can drastically cut token usage and operational expenses, while still delivering quality results. But this isn't just about saving money—it's about building an AI app that scales sustainably and adapts to real-world demands. By the end, you'll have the tools to transform your app into a cost-effective powerhouse, leaving you to wonder: how much more could you achieve with the resources you save? AI Cost Optimization Guide Why Cost Miscalculations Happen Underestimating operational costs is a frequent issue in AI application development. Advanced models like GPT-4 often incur higher expenses than initially expected due to the cumulative impact of tool calls and inefficient resource usage. For instance, a single user request may trigger multiple tool interactions, significantly inflating costs. In some cases, expenses can rise to 10 times the original estimate, primarily due to poor cost monitoring and resource allocation strategies. Several factors contribute to these miscalculations: Over-reliance on premium models: Developers often default to using high-cost models for all tasks, even when simpler models could suffice. Developers often default to using high-cost models for all tasks, even when simpler models could suffice. Redundant tool calls: Inefficient workflows may involve unnecessary or repetitive tool interactions, driving up costs. Inefficient workflows may involve unnecessary or repetitive tool interactions, driving up costs. Lack of dynamic resource allocation: Static prompts and rigid architectures fail to adapt to the specific needs of each request, leading to wasted resources. Understanding these pitfalls is the first step toward implementing effective cost optimization strategies. The Challenge of Model Selection Choosing the right language model is a pivotal decision that directly affects both cost and performance. Premium models like GPT-4 are renowned for their accuracy and reliability but come with steep operational costs. On the other hand, smaller, less expensive models may struggle with complex tasks, fail to execute tool usage effectively, or require additional processing to meet quality standards. This trade-off underscores the importance of a balanced approach to model selection. By carefully evaluating the complexity of tasks and the capabilities of available models, you can allocate resources more efficiently. For example: Premium models: Reserve these for high-complexity tasks where accuracy and reliability are critical. Reserve these for high-complexity tasks where accuracy and reliability are critical. Smaller models: Use these for simpler tasks that do not require advanced processing power. Striking the right balance ensures that you maximize performance while minimizing costs. Cost-Saving Strategies for Building Efficient AI Applications Watch this video on YouTube. Find more information on AI cost optimization by browsing our extensive range of articles, guides and tutorials. Strategies for Cost Optimization To address these challenges, you can adopt several strategies that focus on dynamic, modular, and efficient resource usage. These methods not only reduce costs but also enhance the overall performance and scalability of your AI application. Dynamic System Prompts: Replace static, one-size-fits-all prompts with modular prompts tailored to specific user requests. This approach can drastically reduce token usage, cutting it from 25,000 tokens per request to as few as 2,000–5,000 tokens. By customizing prompts to the task at hand, you eliminate unnecessary processing and improve efficiency. Replace static, one-size-fits-all prompts with modular prompts tailored to specific user requests. This approach can drastically reduce token usage, cutting it from 25,000 tokens per request to as few as 2,000–5,000 tokens. By customizing prompts to the task at hand, you eliminate unnecessary processing and improve efficiency. Dynamic Tool Calling: Limit tool usage to only those relevant to the specific request. By eliminating redundant or irrelevant tool calls, you can reduce tool usage by 50–70%, directly lowering operational costs. Limit tool usage to only those relevant to the specific request. By eliminating redundant or irrelevant tool calls, you can reduce tool usage by 50–70%, directly lowering operational costs. Smart Model Selection: Assign simpler tasks to smaller, cheaper models like Gemini Flash, while reserving premium models for more complex requests. This selective allocation ensures resources are used efficiently without sacrificing quality. These strategies are designed to optimize both the cost and performance of your AI application, making it more sustainable and scalable in the long term. How to Implement These Strategies Effective implementation of cost optimization techniques requires a structured approach. By following these steps, you can ensure both cost savings and performance consistency: Intent Classification Layer: Develop an intent classification layer to analyze the complexity of user requests. This layer dynamically determines the appropriate model and tools for each task, making sure optimal resource allocation. Develop an intent classification layer to analyze the complexity of user requests. This layer dynamically determines the appropriate model and tools for each task, making sure optimal resource allocation. Evaluation System: Build an evaluation system to monitor the accuracy and reliability of responses after optimization. This ensures that cost reductions do not compromise performance or user satisfaction. Build an evaluation system to monitor the accuracy and reliability of responses after optimization. This ensures that cost reductions do not compromise performance or user satisfaction. Efficient Architecture Design: Use tools like Claude Code to design a modular architecture that supports dynamic prompts and tool usage. A well-structured architecture is key to maintaining scalability and adaptability. By integrating these steps into your development process, you can create an AI application that is both cost-effective and high-performing. Results and Key Insights Implementing these strategies can lead to substantial cost reductions while maintaining high levels of accuracy and reliability. For example, one case study demonstrated an 80% decrease in operational costs, reducing expenses to less than half a cent per request. This was achieved by tailoring instructions and tools to the specific needs of each user request. Key insights from this approach include: Dynamic and modular system prompts: Essential for reducing token usage and improving efficiency. Essential for reducing token usage and improving efficiency. Smaller, cost-effective models: Perform well when provided with concise and relevant instructions. Perform well when provided with concise and relevant instructions. Accurate budgeting: Requires factoring in the cumulative costs of tool calls, which are often overlooked in initial estimates. These insights highlight the importance of a strategic approach to cost optimization, making sure that your AI application remains both effective and sustainable. Media Credit: Chris Raroque Filed Under: AI, Guides Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. 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Entrepreneur
04-07-2025
- Business
- Entrepreneur
IT Services Companies Set up Dedicated GCC Service Units
The GCC-as-a-Service model enables the company to focus on its core operations while the service provider takes care of the other aspects like infrastructure, real estate, legal compliance, tech peripherals, and talent. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Several Indian IT services companies are setting up dedicated service units catering to global capability centres (GCCs) to help such centres optimize costs and create additional value. Establishing a GCC business typically requires millions of dollars of upfront investment in the form of Capex while taking between 12-24 months to set up, operate and scale. The GCC-as-a-Service model enables the company to focus on its core operations while the service provider takes care of the other aspects like infrastructure, real estate, legal compliance, tech peripherals, and talent. On July 1, LTIMindtree launched its GCC-as-a-Service offering to cater to organizations that may want to set up GCCs or scale their existing ones to optimize costs and create added value. "The catalogue covers a spectrum of Build, Operate, Transform and Transfer services, offering clients the option to pick and choose what they require," the company said in a statement. GCC-as-a-Service commercials are designed on a per-seat or per service basis to ensure cost optimization and value realization. The 'Build' component includes end-to-end support for setting up entities including legal compliance and infrastructure; under 'Operate' services include transition management, program governance, delivery excellence, and knowledge management. The 'Transform' component includes transformation enablers such as industry-specific offerings, technology solutions and frameworks. Finally, the 'Transfer' component includes structured transition services covering talent migration, capability handover, change management and knowledge transfer to ensure long-term success and continuity. Venu Lambu, Chief Executive Officer and Managing Director, LTIMindtree, said, "GCCs are becoming strategic centers for industry-specific transformation and efficiency. LTIMindtree's GCC-as-a-Service helps enterprises build, scale, and evolve their GCCs into global innovation hubs, leveraging our BlueVerse ecosystem to drive next-gen capabilities and gain a competitive edge with scalable, responsible AI." LTIMindtree's GCC-as-a-Service comes days after Quest Corp, leading provider of staffing and workforce solutions, launched Origint, a strategic service-line to help global enterprises set up, scale, and operate high-performing GCCs across India and key international market. This strategic move comes at a time when India has emerged as the epicenter of GCC growth. The country now hosts about 1,800 GCCs, with 120 new centers launched in 2024 alone. These centers contributed to 17 per cent YoY tech workforce growth, adding nearly 1.8 lakh jobs in 2024, and the market is projected to reach USD 105 billion by 2030, employing 24 lakh professionals. As GCCs evolve from cost-efficiency centers into strategic hubs of innovation, Quess said Origint serves as "a single-window solution to empower global capabilities and offers a comprehensive solution that spans blueprinting, regulatory compliance, real estate, infrastructure management, digital onboarding, AI-powered hiring, and managed operations for global enterprises. It offers bespoke solutions for firms seeking shared service hubs, tech delivery centers, R&D units, or customer experience operations." "Global enterprises are increasingly seeking more than mere cost savings — they want speed, innovation, and efficiency at scale," said Guruprasad Srinivasan, CEO & Executive Director, Quess Corp. "With Mohit Mathur joining as Chief Business Officer for our GCC business, we are scaling up this opportunity. Under Mohit's leadership, Origint is being launched, to transform capability centers into dynamic ecosystems that empower businesses to scale and thrive in a rapidly evolving digital landscape. This is more than a new service line, it's a growth engine for our clients and for Quess. Origint is our commitment to powering the next wave of enterprise transformation, not as a service provider, but as a long-term growth partner." Lohit Bhatia, President – Workforce Management, Quess Corp, said, "Over the last 17 years, Quess has built a solid foundation which further enabled us to support over 350 GCCs across 8 countries. Origint - Powered by Quess and in partnership with our demerged entities - Digitide for AI-first digital solutions and Bluspring for infrastructure management, and other key external global partners, we are making a bold bet on the future of GCCs. With this holistic approach across people, platforms, and precision delivery, we are poised to reimagine the GCC playbook." To be sure, GCCs are taking away part of the business from IT services companies as clients are reducing their outsourcing spend by setting up their own tech centres. So by building business lines like GCC-as-a-Service, IT services companies are in a way partnering with the GCCs instead of competing.
Associated Press
01-07-2025
- Business
- Associated Press
LTIMindtree Launches GCC-as-a-Service
WARREN, N.J. & MUMBAI, India--(BUSINESS WIRE)--Jul 1, 2025-- LTIMindtree [NSE: LTIM, BSE: 540005], a global technology consulting and digital solutions company today introduced its GCC-as-a-Service. The services cater to organizations that may want to set up GCCs, scale their existing ones to optimize costs and create added value. The catalogue covers a spectrum of Build, Operate, Transform and Transfer services, offering clients the option to pick and choose what they require. GCC-as-a-Service commercials are designed on a per-seat or per service basis to ensure cost optimization and value realization. LTIMindtree's Talent Solutions, part of our Build Services enables clients efficiently onboard business-ready talent from day one through its in-house AI-powered talent acquisition ecosystem. As a part of Transform Services, the Company provides industry specific offerings; technological solutions and frameworks that lead to acceleration of value realization. Clients will be able to leverage its BlueVerse Agentic AI Ecosystem with industry and function specific agents as well as its AI studios across the world to accelerate their AI journey. Venu Lambu, Chief Executive Officer and Managing Director, LTIMindtree, said, 'GCCs are becoming strategic centers for industry-specific transformation and efficiency. LTIMindtree's GCC-as-a-Service helps enterprises build, scale, and evolve their GCCs into global innovation hubs, leveraging our BlueVerse ecosystem to drive next-gen capabilities and gain a competitive edge with scalable, responsible AI.' LTIMindtree' s GCC-as-a-Service includes: Build: End-to-end support for setting up entities, ensuring legal and compliance readiness, and building infrastructure in major global cities. Services include operational enablement for finance, accounting, tax, workspace setup, and IT. Operate: Services include transition management, program governance, delivery excellence, and knowledge management. This is further enhanced through LTIMindtree's Talent Engage platform and LTIMindtree Shoshin, an AI-based learning platform for building industry, technology, and soft skills. Transform: Full suite of transformation enablers including industry-specific offerings, technology solutions and frameworks. Clients can also access LTIMindtree's AI studios across the US, Europe, and India. Transfer: Structured transition services covering talent migration, capability handover, change management and knowledge transfer to ensure long-term success and continuity. To learn more about LTIMindtree's GCC-as-a-Service please click here. About LTIMindtree: LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. As a digital transformation partner to more than 700 clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences, and business outcomes in a converging world. Powered by 84,000+ talented and entrepreneurial professionals across more than 40 countries, LTIMindtree — a Larsen & Toubro Group company — solves the most complex business challenges and delivers transformation at scale. For more information, please visit View source version on CONTACT: Media Contact: Michelle Kumar | Global Media Relations |[email protected] Shambhavi Revandkar | Global Media Relations |[email protected] KEYWORD: UNITED STATES INDIA NORTH AMERICA ASIA PACIFIC NEW JERSEY INDUSTRY KEYWORD: PROFESSIONAL SERVICES DATA MANAGEMENT TECHNOLOGY SOFTWARE FINTECH CONSULTING ARTIFICIAL INTELLIGENCE SOURCE: LTIMindtree Copyright Business Wire 2025. PUB: 07/01/2025 05:30 AM/DISC: 07/01/2025 05:31 AM
Entrepreneur
01-07-2025
- Automotive
- Entrepreneur
Switch Mobility CEO Mahesh Babu Steps Down; Ganesh Mani to Take Charge
According to the company, this step is aimed at optimizing costs while maintaining momentum in its electric vehicle development, particularly in battery-electric buses and light commercial vehicles. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Switch Mobility, CEO S Mahesh Babu has announced his resignation, effective August 31, 2025. The company confirmed the transition, stating that Babu is stepping down to pursue opportunities outside the Hinduja Group. His responsibilities will be assumed by Ganesh Mani, currently the chief operating officer at Ashok Leyland, who will take additional charge as CEO of Switch Automotive Mobility Limited (Switch India) beginning September 1. The leadership transition comes at a pivotal moment for Switch India, which recently achieved EBITDA breakeven for FY25 and is positioning itself for further financial growth. "We would like to place on record our appreciation to Mahesh for his significant contributions during his tenure with us," said Dheeraj G Hinduja, chairman of Switch Mobility, in a release. Switch India's move to bring Mani onboard aligns with a broader strategy to deepen operational integration with parent company Ashok Leyland. According to the company, this step is aimed at optimizing costs while maintaining momentum in its electric vehicle development, particularly in battery-electric buses and light commercial vehicles. Mani brings with him a reputation for operational efficiency and managing large-scale transformations, qualities that the company hopes will support its next phase of expansion. "Ganesh Mani, with his experience in operational excellence and leading large-scale transformation initiatives, will take Switch India to the next phase of profitable growth," Hinduja added. Switch Mobility, a joint initiative between Ashok Leyland and British manufacturer Optare, is focused on zero-emission commercial transportation. Its current product range includes the 1.25-tonne IeV3 and 1.75-tonne IeV4 electric light commercial vehicles, sold through select Ashok Leyland LCV dealers. In the electric bus segment, the company offers 12-meter models with a range of up to 200 kilometers on a single charge. With over 1,000 electric buses and another 1,000 electric LCVs already in operation, the company claims its vehicles have collectively covered over 150 million kilometers, offsetting more than 100,000 tons of CO₂ emissions. Backed by a strong order book of more than 1,800 buses, including 1,500 in India alone, Switch India projects a doubling of its topline revenue in FY26.
Yahoo
17-06-2025
- Business
- Yahoo
CSG & AWS Expand Collaboration to Accelerate Cloud Transformation in Telecommunications & Financial Services
New initiative reduces total cost of ownership by up to 60% and boosts cloud migration for global enterprises COPENHAGEN, June 17, 2025--(BUSINESS WIRE)--In a rapidly evolving digital economy, telecommunications and financial services companies face mounting pressure to modernise, scale operations and unlock innovation—all while managing costs and navigating complex growth journeys. Today, CSG® (NASDAQ: CSGS) announced a new strategic collaboration agreement with Amazon Web Services (AWS) to fast-track cloud transformation across these industries. The initiative will come to life through advanced cloud-native technologies, cost optimisation and platform innovation. "As industries double down on cloud transformation, they need scalable, cost-efficient platforms that can evolve with them," said Mayoor Mahendra, Vice President, Network Solutions, CSG. "Our extended collaboration with AWS amplifies the value of CSG's Converged Mediation solution by pairing it with AWS's global infrastructure. Together, we're helping telco and banking and financial services leaders modernise faster, reduce costs and innovate with confidence." Building on a long-standing collaboration, this initiative brings CSG's enhanced mediation capabilities to the AWS Marketplace. The solution delivers up to 60% total cost of ownership savings and accelerates customers' journey to the cloud while unlocking new operational efficiencies. CSG and AWS will co-invest to expand access to cloud-native capabilities through technical enablement, go-to-market collaboration and ongoing platform innovation. In turn, CSG customers gain access to advanced technologies like AI, Agentic AI and GenAI—empowering them to scale efficiently, monetise investments and deliver differentiated experiences that build trust and long-term loyalty. "AWS, along with CSG, is committed to helping our CSP customers advance in their digital transformation journey," said Michael Singer, Director of North America Telecommunications, AWS. "This collaboration underscores our shared vision to help global enterprises modernise with a cloud-native approach, improve business outcomes with GenAI and deliver enhanced customer experiences." CSG and AWS will jointly present the benefits of the enhanced collaboration at the upcoming TM Forum DTW Ignite 2025 in Copenhagen. Stop by the CSG booth (#310) to learn more. About CSG CSG empowers companies to build unforgettable experiences, making it easier for people and businesses to connect with, use and pay for the services they value most. Our customer experience, billing and payments solutions help companies of any size make money and make a difference. With our SaaS solutions, company leaders can take control of their future and tap into guidance along the way from our fiercely committed and forward-thinking CSGers around the world. Want to be future-ready and a change-maker like the global brands that trust CSG? Visit to learn more. View source version on Contacts CSG Contacts: Kristine ØstergaardPublic Relations+44 (0)79 2047 John ReaInvestor Relations+1 (210) Davis BarkerInvestor Relations+1 (303)
