Businesses rely on all sorts of technology to keep operations running smoothly; IT costs often account for a large chunk of operating expenses and there is always the nagging feeling that you should be spending less than you are. While you ideally do not want to cut costs to the point your business would suffer, chances are, there are some changes you can make. It just takes a commitment to examining your current modus operandi and educating yourself about the options available to you to scale back spending. Here are just a few helpful tips to get you started.
Get a Team Together to Analyze Spending
The only way to solve any problem is to figure out exactly what needs to be fixed. Get together a team of your best IT people, someone from accounting and someone from legal. These people will be able to review over every aspect of your IT spending to see where the business is being wasteful and cuts can be made, as well as, if there are any cost-saving shortcuts for the current way things are being done. In business, it is easy to fall into ways of doing things without ever stopping to think if there is a better option. By assembling a team of experts from each of the above areas, you’ll be able to easily identify what can be done to improve cost efficiency.
Get a Lawyer to Analyze Current IT Contracts
Have your business attorney go over your current service provider contracts with a fine tooth comb and see if he can negotiate you better deals. If you use any sort of outsourcing service, work on getting as much out of them as you can for the current prices you are paying. Promises to extend contracts in exchange for lower prices can be enticing in a time when they may have trouble holding onto business.
Go Virtual
Storing all your data in-house can add up to big costs. Virtualization can be a cost-effective solution for many businesses. Many cloud providers offer cheap servers and other services that will help cut back on IT spending. You will need fewer servers, which also translates to reduced energy costs. You may also be able to cut back on IT staff, whose salaries can account for a large portion of your expenses. The best part about these services is that you only purchase what you require in the moment, and as your needs change, you can scale up or down.
Don’t Just Throw Away Equipment
Instead of just throwing away old computers or other pieces of equipment, first check if you can get any cash for it. You may be able to sell it on Ebay or to a local dealer. This can also help you save on the costs that are sometimes levied to get rid of this type of equipment. In some areas, it may cost up to 50 dollars to get rid of one computer monitor.
Beware of Buzzwords
Technology is constantly evolving and at any given moment, there is always some hot technology that is emerging and considered a ‘game changer’. After hearing so much about it, you may feel tempted to jump on the bandwagon, thinking your business will surely benefit. Maybe it will or maybe it will not. It will depend on your particular business, your IT needs and a host of other individual factors. Do not take the leap without doing your homework. Perform a cost-benefit analysis to see if it is worth it.
About the Author:Kelli Cooper is a freelance writer who blogs about a variety of business topics. If you are interested in learning more about how the cloud can help your business, visit website for more information.