There are always ways to save money on IT costs with these 7 helpful ways to eliminate high IT spending that won’t compromise how your company is run.
Looking for ways to cut budget spending is always the right idea for any business. There is one area that you might not have considered before. IT spending. The old advice is that you should spend 4-6 percent of your revenue on IT costs, but that does fluctuate depending on the industry you are in. Deloitte’s US CIO found that in their technology investment studies the average being spent on IT was around 3.28 percent for all industries. That’s not a bad figure to hover around, but how should you realistically get there? There are always ways to save money on IT costs if you know where to look. Here are 7 helpful ways to eliminate high IT spending that won’t compromise how your company is run.
#1: Renegotiate Your Software Licenses
Take a hard look at all the software licenses you are paying into. This might be an area that you have just kept the same for years on end, not really taking into account how much this is costing you. Jump on the chance to eliminate some of these programs that you aren’t using very often or even at all.
Only pay into the ones that you absolutely need, like Microsoft Office 365. There might be more affordable plans and newer bundles available that will save you money. It’s worth a phone call to check on this with each service provider and try to negotiate lower costs.
#2: Switch to Open Source Software
Look into the open-source software available that will save you considerable money in the long run. This eliminates annual fees for the use of the software. It’s estimated that nearly 80 percent of businesses are using some form of open software, according to INC Magazine. Obviously it’s the wave of the future to go with open software technology platforms that are dependable and free to use.
#3: Downsize Computers or Hardware You Aren’t Using
You may be able to get rid of an old computer or other outdated hardware that’s just sitting around taking up space. Newer devices and tablets might be more affordable after the initial investment. That way when you have new employees come into the office, it’s less expensive to get their IT setup going than in the past.
#4: Outsource IT
Having a dedicated IT staff at your company might not be necessary anymore. You may be able to “pay as you go” with a more affordable outsourced IT company. That way you are only paying for the exact services you need from those IT professionals, instead of constantly paying a full time IT staff that you don’t need.
#5: Keep Closer Track of Spending
It’s easy to let IT costs just stay consistent year after year. By keeping closer track of what you are spending each month, it may lead to areas that you can cut out. Getting rid of wasteful spending is going to happen much faster when you are going over those costs more often.
#6: Use the Cloud
Going over to a cloud-based data system can save you some serious money. You may be able to get rid of expensive data servers that are not only costing you, but aren’t the safest way to store data anymore. The utility savings alone is significant enough to make the move to cloud computing over keeping your old servers up and running. Taking full advantage of the cloud is definitely a huge cost savings benefit.
#7: Reduce Employee Turnover
This is a valuable goal for any business to try to accomplish. Training new employees and getting them set up to work within your company with all the technology they need to do their job is expensive. Cutting down on employee turnover to maintain better retention rates is going to save you so much money over time. Make your office environment a productive and supportive place to work, so that your staff is more than happy to be there for you.
One More Bonus Way to Save With an IT Audit
After you have applied all these methods for reducing IT expenses for your company there might even more you can do. Keep in mind you may be able to hire an IT consultant to do a “technology audit” of your business. They will be able to point out areas where you can cut costs and run your business more efficiently. It’s definitely worth looking into streamlining your technology costs into considerable savings each year.