How to reduce size of Windows Image file

I am using the default backup and recovery software of Windows 8. After when I had done with installation of all programs and updates in my system the size of my C drive is around 15GB. And I had created a entire partition image file. It is also around that size. I want to reduce this size because it is occupying a huge space. How can I do that. Can I move the file in some other folder or place. I am trying to locate some specific option that can help me to work this a bit more effectively but the same fails to work.

I am having the same issues where my C drive occupying huge space and my system showing error messages like: 'Low Disk Space', You are running very low on disk space on Local Disk (C:). To free space on this drive by deleting old or unnecessary files, click here...

To optimize disk space on Windows system, you need to follow few easy steps:
1. Run 'Windows Disk Cleanup manually'. See Microsoft document for assistance on using this utility: Delete files using Disk Cleanup
2. Uninstall any unwanted or unnecessary software from the system.

3. Empty Recycle bin > Close all Program & Restart your PC.

Might be this solution helps you to fix the issue....

It is not recommended that you must move the image file. Because it is in a different partition and if in future you have to restore the entire pc then it will fail to work. It is good to leave that partition as it is. I had created a separate 20GB partition which is dedicated for windows backup only. The files are copied in the same and I leave it aside. When there is any problem I use windows bootable disc to restore and this is really quick. You must avoid making any changes to the file or else your recovery will fail.

I also think the above answer is quiet right to the point. The image files consist of all your files and updates that are used for the restoration purpose. And if you do any thing in the file the recovery can fail. It will occupy the space but that is for your safety. There are few third party recovery software that offer you a lot more easier option to manage the recovery image file. You can burn the same on a cd or you can keep them in a hidden partition or on a external drive. That is going to work really well.