Simple Strategies For Reducing IT Expenses (Like IT Asset Management)

Without realizing it, most businesses have surprisingly high IT costs. Even the ones that do know find it difficult to reduce these expenses in an efficient manner. If you can find a way to excel in this area, you’ll catapult your company to the top.

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5 Ways To Cut IT Expenses

Every business is unique. And though there’s no universal cost-cutting strategy that works for every organization, there are tried and true methods that enjoy near-universal application. Here are a few of them:

1. Look for Quick Wins

It’s tempting to target big areas where you can slash multiple zeros off your expense sheet. However, making these sorts of changes typically requires a lot of time, planning, and strategic execution. It’s much better to begin with the quick wins – the low-hanging fruit if you will.

Identify areas of immediate impact. Ask yourself: How can we generate savings this week or month? By putting yourself in a short-term mindset, you’ll build quick momentum. It might only be $100 here and $250 there, but it all adds up. Eventually, these quick wins will pave the way for bigger, long-term savings.

2. Don’t Trip Over Sunk Costs

Psychologically, we all get hung up on sunk costs. If you previously spent $10,000 to implement a new system, it makes sense that you’d be reluctant to give it up. But if that system is costing you $1,000 per month and producing little-to-no results, it doesn’t make sense to keep it around. You’re simply chasing sunk costs. When it comes to reducing IT expenses, you have to view sunk costs as irrelevant.

Future spending should be considered independently of past spending. Nobody wants to admit failure, but sometimes it’s necessary to move an expensive mistake off the books to clear a path for a more cost-effective solution. If it saves you money 6 to 12 months down the road, you should eliminate it without batting an eye.

3. Use the Right Technology

While the wrong technology can hold you back, the right technology can set you free. And thanks to the power of automation and cloud technology, a well-designed tech stack can lower expenses throughout your business. As you think about your approach to technology, we recommend implementing IT asset management solutions to help you stay on top of your IT assets (including both software and hardware).

Not only will this keep you more organized and efficient, but it saves time and money by preventing costly mistakes and eliminating dreaded “ghost assets” (i.e., hardware or software that you forget you own).

4. Go Paperless

If you haven’t already gone paperless, now is the time to usher your business into the 21st century. Thanks to cloud technology and virtual applications, it’s no longer necessary to have printers, copiers, fax machines, paper file storage cabinets, etc.

Not only is going paperless practical – it’s also entirely cost-effective. You’ll find it easier to locate files, send documents, and sign off on contracts. Going digital is typically 50 to 60 percent cheaper than using traditional paper processes. Plus, it’s more eco-friendly.

From a productivity stance, going paperless makes it easier to find and retrieve files (particularly if you have a remote team that’s spread across different locations and time zones). Having a social intranet can help you in this area.

5. Leverage the Right Partners

You can’t always do everything on your own. And even if you have unlimited resources in your business (which is impossible), it makes sense to align yourself with strategic outside partners. Take software development for example.

Partnering with an offshore software development team can reduce costs, alleviate internal pressure, and lead to a faster and better quality product. In addition, this allows you to focus on core tasks and responsibilities without tripping over things that fall outside of your control.

Ready, Set, Cut!

Stop viewing cost-cutting as a monumental uphill battle that will require all of your energy and effort. All it takes is one step in the right direction. As previously mentioned, start with the quick wins and then let the momentum produce even bigger wins. Before you know it, $100 in monthly savings turns into $1,000, which snowballs into tens of thousands in long-term savings over the years.