What do competent IT services cost your Ohio business? It could be more than you’d expect. In day-to-day operations, your company probably uses a combination of computers, multifunction printers, phones, data backup, cloud storage, and more. All of the devices and software in this complex, ever-shifting network will need IT services at some point.
It could be as simple as installing the latest security patch or as complex as migrating information to a new operating system because the old software is obsolete. There’s one constant at play. This costs money, sometimes a lot of money.
A Global CIO Survey for 2016-2017 found that, on average, companies spend 3.28% of their revenue on IT. This percentage varies quite a bit by industry. For instance, banking and securities-related businesses may fold over 7% of their revenue back into IT services. This number has probably risen sharply since then, with studies suggesting a 3% growth in IT spend in 2020 alone.
Where is the money going? A Computer Economics study for 2019/2020 suggests that IT budgets are diversified but show some clear priorities. Cloud technology leads the pack, as mentioned by 80% of the companies in the study. Cloud infrastructure, data analytics, and digital transformation aren’t far behind.
These IT costs add up, and all signs point to a continued rise in expenses for this year. However, your Westerville business doesn’t have to accept this impact on your monthly budget passively. There’s a lot you can do to reduce your IT costs without cutting data security and quality of service.
Outsource Your IT to a Managed Service Provider
Instead of keeping an in-house IT department, many companies are getting their IT through a managed services provider. This can be highly cost-effective. After all, the provider’s team of IT professionals works with multiple clients. This lets them offer lower prices. Meanwhile, you may be able to work with highly experienced pros and people with niche specializations. Many of these IT professionals would be prohibitively expensive to hire full-time.
Outsourcing also gives you access to advanced equipment, software, and cybersecurity measures that your business might not even know about. The managed service provider’s entire job is to provide excellent IT value and stay at the cutting edge of the market. The cybersecurity services alone can be worth the contract. After all, IBM has found that a single data breach can cost an average of $4.24 million.
Transitioning to the Cloud Reduces IT Costs
Switching to cloud computing can take a bit of time and money, but many businesses have found it’s well worth this investment. Cloud-based setups aren’t just efficient and uniquely suited to the modern, global marketplace. They can also trim your IT costs in several ways.
First of all, using cloud computing reduces your need for IT services in general. You may be able to reduce your company’s IT department or redirect them to other company roles. If you outsource your IT, you might be able to get by with fewer services and, therefore, a cheaper contract plan.
Cloud computing, primarily through a third-party service, gets you off the hook for numerous infrastructure-related expenses. The cloud service provider is often responsible for maintaining hardware, updating software, troubleshooting, and more. You won’t need to dedicate your office’s space and your employees’ time to keeping the cloud computing network going.
Don’t forget about the more intangible costs of physical storage and on-premises networks. If a system goes down, your entire workforce may be paralyzed until it’s repaired with a last-minute and expensive servicing job. Every minute that passes is wasted time, wasted money, and wasted opportunity to be productive.
Tips to Reduce IT Costs Now
It can take some time to find a good, outsourced IT service partner and transition to cloud computing. What if your budget is in crisis and you need to trim expenses now? You don’t want to hamstring your business or get rid of a vital service. Instead, be methodical and take decisive action. Here are five tips:
Take a detailed inventory. Look closely at expenses across your company. If you need an outside service for this audit, get one. It’s worth the investment to have a clear idea of where your money is going.
Look for immediate pay-offs. Need money freed up now? Look for the items and services that can be suspended or removed, which will free up expenses quickly. This could be monthly expenses, quarterly, or however urgent your timeline is.
Go for a big cut. It takes time for your employees and business to adjust to the new normal. Multiple overlapping cuts will extend this as each change resets the timer. One decisive cut lets your people and your company rebound faster and regain productivity.
Don’t let sunk costs sink you. Your past spending and investments need to be separated from your current plan for the future. Yes, have an accurate idea of what you may be giving up by cutting the service or device. But don’t let that hold you back from making the tough decisions.
Recovery matters as much as cuts. What unspent and uncommitted expenses could be returned? This cash infusion can make a tight budget work and save you from making painful sacrifices. Look closely at contracts and talk to vendors about your renegotiation or termination options.
Managed IT Services Can Save Your Business’s Budget
How do you reduce your IT costs? A managed service provider gives you access to talented IT professionals for a flat, predictable cost. Switching to cloud computing can trim the amount of tech you need to maintain and reduce your IT fees. Finally, don’t be afraid to cut extraneous services, dispose of unnecessary devices, and walk away from sunk costs. They’re draining your budget if they aren’t necessary for your business.
Would you like to know more about our managed IT services and how they can reduce your Cincinnati, Columbus, or Dayton business’s expenses? Contact Optimized IT today, and one of our representatives will be happy to chat with you.