Managing costs is a large part of doing successful business in a challenging economic climate. In particular, IT costs can be an expensive component of a business’s overall budget and can be challenging to cut as many of the costs are perceivably fixed.
But there is light at the end of the tunnel – many IT costs can be significantly reduced, from labour costs right through to software and hardware, without compromising on operational and service quality.
Here are some effective strategies for reducing costs across the board…
Conduct an audit of software, hardware and services
The first step in cost-cutting is an analysis of exactly what the costs are – how are they attached to software, hardware, third-party services and staff? Once you have the full picture, you’ll have a baseline from which to work.
Decommission, update/upgrade and outsource
Based on your audit, you should be able to decommission any out-of-date software and save on unnecessary licences, update services and hardware to support your business functions more effectively and shop around for third party services which offer better value.
You should also be able to scale your third party services to what you actually need, rather than having to overpay for functionality that you either don’t need immediately or may never need.
You’ll also have a far clearer picture of where your internal resources are being deployed and whether they might be better used elsewhere, or more efficiently where they are. Where there are gaps in capability, you should be able to fill these with outsourcing options that may prove less costly than hiring internally.
Manage CapEx effectively
Take a fiscally-responsible approach to spending for the IT department – by doing the basics of budgeting, forecasting and cost-saving opportunities at the beginning of a new financial year, you should be able to manage costs better by anticipating where expenditure might occur so that cash flow, competitive purchase prices and other financial advantages for the business can be planned.
Enhance your team affordably by introducing an intern programme
There is a large talent pool of students and post-graduates, many of whom have the requisite skills and knowledge but lack experience in the operational environment. By bringing them in, you can tap into that enthusiasm and knowledge, give them a grounded introduction to their career all whilst paying graduate salaries.
To discuss more ways to reduce IT costs without reducing efficiency, contact one of our friendly staff at Cambridge Support on 01223 921 000 or ask@cambridgesupport.com.