4 Ways Strategic IT Services Helps Organizations Reduce IT CostsMany people are surprised to learn that the typical business with under $10,000 in monthly expenses only has one month of cash on hand. Larger businesses also struggle in this area, with most falling short of the 3 to 6 months worth of saved operating expenses that financial strategists recommend. One of the best ways to boost your cash on hand is to reduce operating costs. Analysts point to IT as one of the top areas where overspending occurs. With the average business already spending 8% of its revenue on IT services and products, it’s more important than ever to develop a strategic plan to monitor IT spending. Below are four ways strategic IT services help organizations decrease their IT spending and the single best step you can take to reduce IT costs.
Inventory your current subscriptions for cloud-based servicesThe path to reduced IT costs begins with a thorough review of the software and services you currently use. By taking a complete inventory of your subscriptions, you can identify services that are eroding your budget while delivering little benefit to your organization. Here is a summary of how the inventory process works:
- Step One: Prepare a comprehensive list of every paid cloud-based service or software platform your organization uses.
- Step Two: Identify and strike services and software that have not been used, or were rarely used, within the past calendar year.
- Step Three: Evaluate your ROI for the remaining subscriptions. Eliminate those that have failed to deliver any benefit.
- Step Four: Set a date to reevaluate your subscriptions in 11-12 months.
Review all internet related costsThe majority of internet carriers actively lure businesses into signing a contract. But once the contract is signed, their proactive efforts typically end. Carriers rarely reach out to business owners and IT directors to ensure they are receiving the right services or to make sure they are receiving the most favorable rates for their internet. Meanwhile, business owners also play a passive role in the process. Between the hassle of switching carriers and the threat of early termination fees, many business owners rarely review their internet costs or contemplate switching providers. They often continue to let their contracts automatically renew and often end up paying twice as much as they should. As a business owner or operator, it’s up to you to ensure that you are not being overcharged for your internet or missing out on the latest cutting-edge services. The best way to ensure you are receiving current market pricing and the latest technology is to review your internet costs today. If you lack the time or resources to conduct your own evaluation, a top managed IT service firm can evaluate your spending and possibly help you save as much as $90,000.
Evaluate Infrastructure CostsA whopping 94% of enterprises now use the cloud, with more businesses moving to the cloud with each passing day. Many business owners and operators decide to migrate to the cloud to save money. The total potential cost savings vary, but businesses can expect to save 30% to 50% on costs by moving applications to the cloud instead of refreshing or upgrading their server infrastructure. While a move to the cloud offers cost savings and a variety of other advantages, it’s important to make sure your networks and connections can handle the switch. You also need to ensure that your cloud solution is compatible with your software license. An experienced IT consultant can guide you through the decision-making process and help you make the right choice for your business.
Assess Internal Staffing NeedsMost organizations have at least one in-house employee who is dedicated to IT-related tasks. Some larger organizations have a CIO who oversees an in-house IT team, while growing organizations may find themselves unable to focus on lucrative new initiatives because their IT staff is overburdened by time-consuming, relatively inconsequential tasks. Here are some specific ways strategic IT services can help you minimize IT costs:
- Evaluate in-house staff workloads to identify overworked employees and positions that may not require a full-time or in-house employee
- Review existing IT tools to ensure that your IT staff have easy access to the latest cutting-edge tools they need to work efficiently
- Determine if hiring an outsourced Managed Service Provider would allow your in-house IT staff to focus on high-priority, impactful tasks
- Assess employees’ ability to be proactive or deploy new solutions, rather than simply reacting or responding to IT problems
What Is The Best Way To Reduce IT Costs?By following the steps above, you can put your company on the path to lower IT spending. But the single best way to reduce IT costs is to seek a professional evaluation of your existing IT services. A specialist in the managed IT industry will cover all the points above and provide the following:
- A review of your vendor pricing to make sure you are receiving the best current pricing
- An evaluation of your network to ensure you meet the needs of remote workers without overspending or compromising security
- Detection of IT vulnerabilities that can put your company at increased risk for financial loss or cyberattacks
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Baroan is a complete IT services & IT support company working with organizations in Elmwood Park and across the United States of America.