How to Reduce IT Costs in 3 Easy Steps

Businesses and nonprofits are always looking for ways to reduce IT costs. Here are three easy steps to do exactly that.

Step 1: Don’t Own the Farm, go to the Local Grocery Store Instead

Does it make sense to invest in chickens for the purpose of laying eggs or buying a cow to produce milk? The intelligent course of action is to go to the local grocery store as needed and buy your eggs and milk from professionals and farmers who specialize in this area of production.

When it comes to IT, think about the cost of hiring, training and supervising internal IT staff. Think about the software investment needed to put in place the proper remote monitoring and maintenance systems. Don’t forget to consider the cost of productivity issues when your computer systems don't work properly or if internal support is slow to fix issues.

Step 2: Don’t Reinvent the Wheel. Decide on Core and Non-Core Business Activities

Looking at your company’s technology set up, consider what crucial tasks are important to your organization’s livelihood and what are the key tasks that your company specializes in.

What parts of your technology support and management drive your competitive advantage? It may be business analytics, database management or customized software. It likely isn’t help desk support or IT infrastructure management and there isn’t much point in you spending precious time and resources on that.

The smart course of action is to do what you do best and what drives your competitive advantage. Everything else you should consider delegating or outsourcing to outside firms.

Step 3: Take Action and Outsource Your IT Support

When you have an internal IT person you are entrusting all your technical expertise on this one individual. Going on vacation, getting sick or resigning are all potential risks that can potentially put your organization in a technical halt.

You are also relying on this internal IT person to reinvent the wheel and to create their own method and process in dealing with day to day monitoring. When you outsource your IT needs to a reputable managed services provider you are putting your IT infrastructure in the hands of a super employee who has the energy, knowledge, and experience of multiple people. This individual never gets sick, never goes on vacation and never has personal issues that will arise. They have the processes and skills to benefit your organization right away and allow you to focus on your core business that drives your competitive advantage.