Strategic Tips for Reducing Business IT Costs

For many companies, technology has allowed them to break into new local, regional, and perhaps even global markets, and provided other benefits such as streamlined communication, increased efficiency in inventory levels, and so much more. However, technology costs also typically account for one of the largest expenditures on the balance sheet of most organizations. In this post, we will outline 5 tips for reducing these costs as much as possible without compromising on productivity and efficiency.

Reevaluate Existing Contracts 

It’s all too easy to have a “set it and forget it” mentality when it comes to contract negotiations with an IT vendor. Savvy companies however will regularly evaluate their current IT vendor. They may have a promotion or a special deal to take advantage of — plus it’s always a good idea to consider renegotiating a contract rather than simply signing on for another service term. Knowing their clients are regularly evaluating their services, keeps IT vendors alert and competitive.

Consider Consolidation

As with any other industry, IT vendors foster their own growth by improving and expanding their services. For organizations this means some of the services they receive from disparate IT vendors, may now be available from fewer or perhaps even one single vendor. Consolidating services typically improves organizational efficiency, and likely will result in significant savings.

Be Open to Open Source Software 

In the past, the only reliable options for software packages came from major tech companies. While these applications did perform as expected, they also came with a steep price tag. With open source options becoming more and more mainstream and just as reliable, companies can save a bundle by opting for non-traditional software.

It’s Time to Move to the Cloud

Taking advantage of cloud computing resources means companies no longer have to buy and maintain their own on-site hardware and storage facilities. Cloud computing works anytime, anywhere, it increases efficiency, and people and organizations are moving to it in droves. It’s time for any stragglers to join the cloud crowd.

Fixed Costs – Make Planning Easier

Fixed cost managed IT services provides the consistency companies need when planning their budgets. By setting aside a fixed amount, companies won’t be financially blindsided by a crisis such as a security breach. Instead if the worst should ever occur, companies will know they are fully prepared to meet any IT crisis with a comprehensive plan.