What is one IT cost optimization technique that a small business can use to help manage or reduce their IT expenses?
To help small businesses optimize their IT cost, we asked small business owners and tech professionals this question for their best techniques. From outsourcing IT services to utilizing open source software, there are several insights that may help you manage or reduce your IT expenses for years to come.
Here are ten techniques for IT cost optimization:
- Automate Business Processes
- Adopt Low-Code Automation
- Outsource IT Services
- Optimize Your Existing Workforce
- Pay Annually Versus Monthly
- Prolong Server Life
- Utilize Open Source Software
- Start With Email Addresses
- Move to the Cloud
- Analyze Technology Integration
Automate Business Processes
The place that some people might not think to look at when it comes to optimizing or reducing IT cost is at the business processes. There are undoubtedly some tasks that are repetitive and inefficient for a person to continually do. Looking into automation of those processes can help reduce costs. Start small by looking into chatbots. They can handle some of the FAQ stuff, but also direct a customer to a human if the question is more complicated. According to Deloitte’s Global RPA Survey, ROI was seen in about 12 months and there was a cost reduction.
Randall Smalley, Cruise America
Adopt Low-Code Automation
Business leaders should consider adopting a low-code development platform, such as ours. We provide outcomes that optimize business processes with solid business and IT structures. Our low-code automation platform enables our clients with significant cost-savings and increased productivity. With unlimited customization and integration, we have IT solutions that not only address an organization’s needs holistically but also have the benefit of cost reduction.
Spiros Skolarikis, Comidor
Outsource IT Services
Many small companies do not need to hire full-time IT staff. Having a good contractor will be enough to run most smaller businesses, unless you are in the IT industry. Those contractors often can get discounts on hardware and have enterprise licenses for many software types (i.e. antivirus). In my opinion, this will surely reduce IT expenses and increase security.
Maximilian zur Muehlen, CustomPlasticPart
Optimize Your Existing Workforce
Use workforce management application capabilities, like automation of manager experience or virtual assistants for routine and common tasks to reduce staffing costs. Implement bots to augment the capabilities of human workers and enable a more productive work environment.
Heloise Blause, Home Kitchen Land
Pay Annually versus Monthly
Many tech providers offer a hefty discount for annual payments. If a business is certain that they’ll rely on the technology for the next year, sometimes it may make sense to prepay the annual amount to receive a discount. Twenty percent of four or five figures can add up, especially if there’s a level of certainty that nothing will change with the tech stack.
Brett Farmiloe, Markitors
Prolong Server Life
One thing you can do to optimize your IT environment is prolong the life of your servers. Instead of refreshing your servers every 3 years, you can extend the warranties on these servers, upgrade the memory, and use them for another 2 years. This will help reduce capital expenditures and optimize your IT expenses.
Chris Gadek, AdQuick
Utilize Open Source Software
I highly recommend using open-source software. Not only does this software give you more freedom to make modifications but it’s way less expensive. There’s no annual maintenance cost because you have the power to control when and how often to maintain the software. Your business won’t be tied to the software provider for help so there are options for assistance. The ball is in your court when using open-source.
Brandon Brown, Grin
Start With Email Addresses
If you are a small business owner and are looking for ways to save money on your IT spend, you should look into consolidating your two or three email accounts into one. This is the first step in reducing your communication overhead by eliminating the need to log into multiple inboxes. Additionally, this will help reduce the amount of email that comes across your desk as well as creating an easier way for you to keep track of all emails coming in from different sources.
Adam Garcia, The Stock Dork
Move to the Cloud
Moving to cloud based applications has saved us on the costs associated with having our own physical systems. It has streamlined our processes, increased our security, and made our applications easily accessible from anywhere. Another big benefit has been the elimination of application down time when having hardware problems or updating systems.
Keesjan Engelen, Titoma
Analyze Technology Integrations
Many technologies and types of enterprise software integrate well with their approved third party programmes. Although it’s not always possible to predict the exact tech stack, making a reasonable effort in that direction can pay off tremendously. Prioritizing the company needs backed up by objective analysis can help make conscious choices instead of relying on the personal leanings of the decision-makers or employees.
Michael Sena, Senacea