4 Ways Strategic IT Services Help Organizations Reduce IT Costs
Many 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 their revenue on IT services and products. It’s more important than ever to develop a strategic plan to monitor IT spending. Below are ways strategic IT services help organizations decrease their IT spending. And the single best step you can take to reduce IT costs.
4 Ways Strategic IT Services Can Help You
1) Inventory Your Current Subscriptions for Cloud-Based Services
The path to reduced IT costs begins with a thorough review of the software as well as 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:
- First Step: Prepare a comprehensive list of every paid cloud-based service or software platform your organization uses.
- Second Step: Identify and strike services as well as software that have not been used, or were rarely used, within the past calendar year.
- Third Step: Evaluate your ROI for the remaining subscriptions. Eliminate those that have failed to deliver any benefit.
- Fourth Step: Set a date to reevaluate your subscriptions in 11-12 months.
In many cases, the inventory process yields some surprising findings. For instance, you may discover that your organization has been paying thousands of dollars for subscriptions that a former employee authorized but have not been used in months or years.
2) Review All Internet-Related Costs
The 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 as well as 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. 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.
3) Evaluate Infrastructure Costs
A 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.
A move to the cloud offers cost savings as well as 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.
4) Assess Internal Staffing Needs
Most 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. But 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
After taking a long look at your current staffing in relation to your IT demands, you may discover that you are paying a sizable salary and benefits to a full-time employee who really only works 15-20 hours per week. On the flip side, you may find out your IT lead is so overwhelmed with Level 1 and Level 2 requests. That they have little time left to introduce new technology or tools that may ultimately resolve the need to cut costs.
What is the Single 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
We invite you to contact us at Baroan Technologies. Discover how we can help you maximize your ROI on IT products and services. By scheduling a complimentary consultation with one of our IT consultants, you will put your company on the fast track to IT efficiency. We look forward to the opportunity to help your business become a model of IT excellence!