Reducing IT Cost without Giving Up Control

by / Wednesday, 17 July 2013 / Published in Business

IT Cost

Your bottom line is your top concern. And reducing costs is paramount. When you’re looking to control your spending, IT is never on the top of the list—the business value of top-notch IT is always too high. But smart IT cost reductions can also help improve customer service, improve operational efficiencies and improve your business. How?

Invest up-front.

To stay competitive, you need to stay on top of emerging technologies. Trying to be productive and viable in the marketplace with out-of-date tools is penny-wise and pound-foolish. But most small businesses are apprehensive about expensive technology upgrades, because the landscape keeps evolving.

But while keeping up requires a financial investment and smart decisions, the cost of being behind is far greater.

Invest in the best-quality equipment you can afford—and look ahead when designing your technology infrastructure. You may not think you need the fastest processor, the server with the greatest capacity, the highest-bandwidth network router now, but you’re investing in the growth of your company. Invest in the technology you’ll need for your future.

Be proactive.

Threats from viruses and other malicious software is increasing—and the business impact can be traumatic. It can even take your company down. And it is far, far more cost-effective to move from break-fix and emergency mode to maintaining your technology infrastructure on a regular basis. Proactive security and regular care protects your information technology infrastructure and the critical business data you rely on.

Have a plan.

How do you want to accomplish your business goals? How can you use current and emerging technology to accomplish those goals? Do you want to automate systems? Expand your office across the city and across the country? Do you want to enable always-available access from outside the office?

With a plan in place, you can carefully construct your IT budget—instead of responding to incidents, you’ll be seizing opportunities when they come available. This can also help you space out, or even eliminate, big expenditures and improve cash flow.

Consider outsourcing.

Controlling capital cost may not be the only reason to outsource, but it’s a major one. When you outsource, you convert variable costs to fixed ones, and avoid large outlays of cash when it’s time to upgrade or evolve your IT strategy. This releases capital—both human and revenue—for investment in the rest of your business. Outsourcing lets you focus your resources where you need them most.

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