With a rise in the cost of technological tools, the reduction of IT expenditures is becoming a top priority for many businesses. Fortunately, you can implement several cost-effective strategies to control your IT expenditures without compromising organizational performance. Here, we will explore some of the most effective methods for reducing IT costs.
Reducing Personnel Costs
One of the most effective ways to reduce your IT costs is by decreasing the personnel required to support your technology infrastructure. This can be accomplished in a number of ways, including automating manual tasks and outsourcing support functions to third-party providers.
Let's take a look at some simple techniques that you can use to reduce your personnel costs:
1. Outsourcing IT Staff & Services
Outsourcing services to third-party providers allow you to save on salary, benefits, and other associated costs. But it's important to choose a reputable provider that can deliver quality services at a reasonable cost.
Some companies have found that by outsourcing more of the basic, mundane tasks, enables their employees to be reallocated and focus on high-valued work for the organization.
2. Reduce Turnover
Another way to minimize your IT costs is by reducing your staff turnover. This can be done by offering employees competitive salaries and benefits and providing training and development opportunities.
3. Use Technology to Automate Tasks
Another way to reduce personnel costs is to use technology that can automate tasks currently performed manually. Technology Expense Management software, such as Clearview can help you automate many tasks associated with managing your technology infrastructure, including license management, contract management, and invoicing.
Reducing Non-Personnel Costs
In addition to personnel costs, several other expenses can be reduced by implementing cost-effective strategies. These may include the following:
1. Virtualization
Virtualization is a cost-effective way to reduce the number of physical servers required to support your technology infrastructure. By virtualizing your servers, you can consolidate multiple physical servers into one server, saving you money on hardware, software, and maintenance costs.
2. Cloud Computing
According to Microsoft Trend Report, 80% of IT decision-makers say that the cloud allows their organizations to become more agile and responsive to change. Cloud services are typically offered on a pay-as-you-go basis, which can help you save money on upfront costs. In addition, cloud services are often scalable, so you only pay for the resources that you use.
3. Data Center Consolidation
By consolidating your data center, you can reduce the number of physical servers and storage systems required to support your technology infrastructure. This can lead to significant savings on hardware, software, and energy costs.
4. Software Licensing
One of the biggest expenses associated with technology is software licensing. But, the good news is that you can still save money on software licenses. For example, you can purchase volume licenses, which offer a discount for purchasing multiple licenses. You can also negotiate with vendors for lower prices.
5. Utilize Open-Source Software
Open-source software is available for free. While there are some costs associated with implementing and maintaining this software, it can be significantly cheaper than purchasing commercial software.
Our Two Cents
When it comes to reducing IT costs, there are several strategies that you can use. But it's important to choose the right strategy for your organization. You'll need to consider factors such as your organization's size, budget, and specific needs, to find the best solution for your organization. The current labor pool challenges will continue to add to this business challenge.
What cost-effective strategies have you used to reduce IT expenditures in your organization? Share your thoughts in the comments below!
About the author: Jeff Poirior
Jeff brings 25+ years of telecommunications and information technology management experience in voice and data networking, server support, and telephony and security; with a significant emphasis on customer service. Prior to joining Valicom, he was chief of the infrastructure support section for the Wisconsin Department of Transportation. Jeff was the vice president of operations for CC&N, overseeing telecommunications, help desk, data, and desk side support services. Prior to that, he served as the associate director of technical resources for Covance, responsible for managing systems and network operations supporting 1700 users in Wisconsin and Virginia. He has also led data center operations at Magnetek Electric, supporting mainframe systems, client/server applications, telephony systems, and computer-aided design. Jeff holds a bachelor’s degree in business administration from Cardinal Stritch University and a master’s degree in business administration from the University of Phoenix. In addition, Jeff is a past board member of the Wisconsin Telecommunication Association.