The average IT budget for a small businesses is around 4% of revenue. But as your business expands and scales, this percentage can creep up, leading to hundreds of thousands of dollars in expense. Businesses want to make the most of their IT budget, which often means looking at areas to trim costs and invest in emerging, innovative technology. These popular IT cost-cutting strategies that can help you save money to reinvest in your business.
1. Take Advantage of Cloud-based IT
One of the best IT cost-cutting strategies is investing in cloud-based technology. Cloud-based technology has lower upfront costs in software, architecture, hardware, and infrastructure, and it’s also cheaper and easier to maintain. Instead of housing, cooling, and maintaining huge data facilities, cloud-based technology saves both time and money in terms of manpower. For example, investing in cloud communications instead of outdated legacy telecommunications technology saves money and allows you to scale demand up and down without purchasing additional hardware or space.
2. Standardize IT Processes and Systems
If your business operates multiple locations, it’s especially important to standardize IT processes and systems. Standardization and consistency allow you to optimize resources, build a stronger network, and streamline business processes. While each location operates separately, your organization as a whole will enhance its productivity, reduce operational costs, and be able to scale effortlessly with simplified processes. Not only is multisite IT management easy to oversee, it can also improve your bottom line.
3. Take Advantage of Automation
One of the most exciting innovations in IT is automated technology, which allows businesses to shift away from time-consuming manual processes. There are many areas of IT you can automate, from service requests and ticketing systems to asset management, data cleansing, and patch management. Tedious, repetitive IT tasks like password resets, file monitoring or event log monitoring often waste significant time and resources. All of these processes can be automated if implemented correctly. This saves your company expense while also reducing factors like employee burnout and turnover: When your internal IT team can focus on strategic initiatives, they are likely to achieve higher employee satisfaction.
4. Outsource IT Services
According to McKinsey Global Institute, some organizations see up to a 60% reduction in operational costs when choosing managed services. IT is one of the most expensive business functions to maintain in-house because of emerging technology, cutting-edge innovations, and the high cost of employing in-demand, highly-skilled workers. By outsourcing some or all of your IT to a managed service provider, you can reduce costs significantly and free up your remaining in-house team to work on more strategic projects. Small, repetitive tasks could be automated, and your internal team can stay highly focused on big-picture initiatives that make a positive impact on your bottom line.
5. Streamline Your IT Vendors
One of the best IT cost-cutting strategies is reducing your IT vendors and bundling services. That will you save operational time and you can typically get a more cost-efficient package by working with a single provider for multiple services and solutions. Economies of scale come into play when you house different offerings under one vendor, so explore IT partners with a comprehensive portfolio, including services like unified cloud communications, cybersecurity, networking, employee security awareness training, and more.
TPx Can Help Reduce Costs With Affordable IT Solutions
Explore affordable, high-quality managed service providers like TPx to reduce your IT costs. TPx offers a full suite of affordable business IT solutions like internet, networking, cybersecurity, and cloud communications solutions. Simplify your processes, streamline your technology, minimize your workloads, and reduce repetitive tasks — all while saving significant money. Curious how much you can save with TPx? Contact us for a meeting today, and we’ll personally assess your current IT bill to show you how much money you could be saving.