Businesses are often overwhelmed by IT costs since a reliable technology infrastructure and its maintenance can be expensive. And with the recovery from the COVID crisis, companies have examined and replanned their budget to reduce, delay, or renegotiate for any potential savings.
To fund business-critical initiatives to compensate for the months of little to no lucrative opportunities, a lot of business owners are searching beyond the general ledgers and have started looking at one of their costliest departments (IT Expenditure) for any opportunity to reduce costs.
1. Use Managed Services to Streamline Costs
Some businesses can benefit from using a managed service provider (MSP) for streamlining and reducing IT expenses. This is particularly true when a company doesn’t have the specialized workforce they need in areas such as network security or data storage.
Using an MSP is a cost-effective option when a business only has short-term work to warrant having an IT specialist manage the job part-time. You end up with cost savings from the reduction of manpower and skills while getting access to round-the-clock support and monitoring and a fully equipped team of IT professionals to manage your technology infrastructure.
If you’re looking for managed IT services/support in your location, the easiest way to find them is to browse online. There are experienced, trustworthy IT support companies out there offering competitive prices without hidden fees.
2. Update Your Technology
If cost reduction is a long-term goal for your IT department and business, then you can’t simply slash cost where you see fit and call it a day. You should take a look at your current spending, track trends, and determine how you can run your operations, data, and infrastructure more efficiently.
Part of this is to determine any major inefficient technology within your IT department. This means replacing slow, outdated devices that consume time. It’s common for businesses to run on a few-years-old network infrastructure that still works but not as efficient as it should be.
Although the price of replacing your outdated technology seems high, you’ll find that it’s more cost-effective to replace old devices with new, higher-performing equipment in the long term.
3. Cut What You Do Not Need
Unneeded services such as surplus phone lines, web hosting, or underutilized broadband/internet lines should be removed. Meanwhile, underutilized servers that eat up energy costs don’t benefit your bottom line, so it only makes sense to eliminate them.
Most businesses and IT professionals waste their budget on software and hardware they don’t use. So check your software licenses and cut down on those you don’t need. Also, make informed decisions on what to keep when you have two or more software and systems doing the same job without any justifiable reason.
4. Make the Switch to the Cloud
The cloud is already a big deal and is expected to keep growing in the future. So why are businesses jumping on the cloud bandwagon? There’s a variety of reasons, but most of it is because of the cost savings.
Moving to the cloud can help reduce your IT expenses and controlling costs. You don’t have to spend on replacing or maintaining hardware for storing data. What’s more, cloud services provide you with a variety of plan options according to your need. You can adjust the cost and usage, paying as you go and as you scale your business.
5. Reduce Turnover
Employee turnover can cost businesses significantly. Companies can spend 6–9 months of a departing employee’s salary to recruit and train a replacement.
That’s why business owners and IT managers are taking steps to reduce turnover in their departments. There are several ways to do this.
For one, improving the company’s culture can make it a more appealing place to work. Promoting work-life balance, offering access to training and opportunities for advancement, or simply showing your team that you appreciate their efforts are enough to increase employee engagement and satisfaction. This makes your IT employees less likely to leave.
Conclusion
People outside of IT often view this department as a costly area. IT managers and business owners usually face the difficult task of reducing IT costs to fit their budget. IT teams need to balance between keeping a strict budget and keeping operations running smoothly.
So follow the above tips to help reduce IT expenses and overall expenditures. Regardless of how big or small the saving is, it’ll eventually add up and benefit you and your business in the long run.