Information Technology (IT) teams have become one of the most vital departments of several companies in recent times. According to the CIO Magazine, companies spent an average of 5.2% of their revenue on IT costs as of 2013. Many entrepreneurs would agree that the IT department should not be starved of resources, particularly at this important time of digital business evolution. However, your IT costs can affect your overall profitability if left uncontrolled, so it is prudent to find effective ways to keep them low. Here’s how to reduce your company’s IT costs.
Outsource Your It Functions
Many small and medium-sized enterprises often rely on outsourcing as an excellent way to lower their IT costs. Indeed, Managed Service Providers (MSPs) can host and maintain businesses’ IT infrastructure more efficiently than many companies can accomplish in-house. Under the MSP model, you pay for remote IT services like remote desk help, backup and disaster recovery, and applications management. As such, you will incur operational expenses based strictly on capacity and usage, which is far more affordable than the huge upfront capital investments you will make when buying on-premise infrastructure and maintaining in-house IT staff. According to the Enterprise Systems Journal, you can save 25% to 40% by outsourcing your IT staff, so keep this in mind.
Make Work Cloud-Based
Many companies are jumping on the cloud bandwagon mainly because it is cost-effective. Indeed, relying on the cloud for document sharing, communication, and storage will lower your business expenses significantly. For example, storing your documents in the cloud will eliminate the need for manila folders, containers, and rooms of filing cabinets. Consequently, you will rely less on paper and its associated products, saving your office money and making it more environmentally friendly. Also, cloud-based systems like Microsoft Teams enhance communication, leading to higher revenue. You can check the cloud status of various providers to find one that best fits your business needs.
Automate your IT services
Machine learning and automation can also help reduce your IT service costs significantly. Many IT professionals are tasked with performing the same tasks every day, from refreshing low-performing equipment to granting permissions for printers and shared folders. These IT service requests take up valuable time in an IT professional’s day, time which your organization will pay for by the hour. Consequently, it is better to leverage automation and machine learning tools to lower or eliminate these ongoing IT expenses. For example, machine learning solutions can automatically refresh your printers and other equipment without the IT staff’s involvement. This way, your IT professionals spend less time addressing problems that technology can easily handle, allowing them to focus on more business-critical tasks.
Reduce employee turnover
The tech industry reportedly has a higher employee turnover rate than any other business sector. Therefore, retaining your IT team members may be more difficult than keeping other employees. Given that the costs of recruiting and onboarding new staff are high, it is essential to support your IT teams to reduce turnover. Simple steps like offering them manageable workloads and allowing remote working can boost employee satisfaction and lower turnover, helping you save on recruitment and training.