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How to Reduce Your IT costs

How to Reduce Your IT costs

How to Reduce Your IT Costs

Cutting unnecessary costs will allow you to invest elsewhere in your business. Why not start with your IT.

IT costs take up arguably the biggest chunk of your business' budget, so any reduction will have a significant impact. Likewise, a more efficient IT set up will reduce time spent on maintenance and management, and allow for more on focus on running your business itself.

A more efficient IT set up allows for a more agile response to changes in the business and market as a whole.

So, read on for our tips on how to reduce your IT costs.

Analyse Your Current Setup

Create a detailed log of all your current costs, then research the market to find what alternatives are available. Are there better value options out there?

What software do you currently use? Are there cheaper alternatives or, better yet, a lower tier of your existing software that would be more efficient?

Is there anything that can be removed altogether? If they’re ineffective or an existing tool can fulfil the same function, you can consolidate everything into the fewest vendors possible.

Finally, look at your current storage requirement to see if reductions can be made there.

Align Costs With Business Strategy

Strengthen ITs standing in your organisation by aligning your needs with the needs of the organisation as a whole, and making them flexible enough to align with business needs as they change.

Create two levels of IT costs, those that are worth paying for and those that aren’t critical to the operation. The essential costs are those that support a short-term goal of the business, lead to a reduction in costs or are vital to day-to-day proceedings. Those that are not essential can be delayed until the budget allows or business goals change.

Review Your Current Contracts

Reviewing all your current vendor contracts can often result in significant savings for your organisation. If your contracts aren’t providing sufficient value, attempt to renegotiate with your vendors. They will often give you a discount rather than lose you altogether, especially if you have several contracts with them.

Work Closely with Finance

Getting detailed insights from the finance department will allow for better management of IT costs.

Explore New Technologies

Are there any new technologies that can save you money and make you more efficient in the long term?

There are three main categories to focus on:

Automation; replacing tasks that would normally be done manually e.g. monitoring systems and scheduling work.
Collaboration; tools that help staff work together and improve productivity.
Virtualisation; reduce the number of servers you need.

Upgrade Equipment

Rather than purchasing new equipment can the existing hardware be upgraded?

Going forward try to make sure you buy devices that will last and can be upgraded.

Speak to your Team

Are your team happy with their current workloads? Discussing any grievances they have and making changes to your workforce accordingly (where possible) will not only reduce staff turnover but also save money on long term recruitment and training costs.

Should staff choose to leave regardless, consider hiring junior staff or new graduates. These will be cheaper initially and will grow in the role as the company does. Also, certain roles may only require part time staff or external contractors. Consider all the options available to you.

Continuous Monitoring

Keep a close eye on your system to ensure you know changes are necessary as soon as possible.

Also, regular monitoring of finances will help easily spot areas where costs can be cut, as well the impact of any previous cost savings.

Consider the Cloud

The cloud will replace all your capital in-house IT costs (servers, network hardware, software licenses etc.) with an easily manageable monthly operations expense.

Your management time is also greatly reduced, you will no longer be needed to set up and maintain equipment, carry out updates and deal with basic support requests. Instead, you will have renewed focus on creating a long term IT strategy.

If you have any questions about your IT our team are happy to help. Just give us a call on 0800 023 9061 or email

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