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5 ways to reduce costs through IT in a downturn

07/04/2009

The topic of cost reduction and savings has never been so pertinent than during these challenging times. What this means for a vast number of companies, is that IT must now not only work smarter for their businesses, but also demonstrate a clear return on investment. Now is most certainly the time to make changes in order to save costs.

 

1.    Thought about outsourcing?

Costs can be significantly reduced by outsourcing your IT through the savings made from a reduction in the IT salaries, benefits, training, sickness and recruitment costs.  Just this week Forrester research highlighted that 50% of businesses are planning to or have already looked at reducing their costs by reorganising their IT structure.  Outsourcing, whether for part, or all of the IT function also brings a whole host of other benefits;  such as the vast knowledge and skill set, experience and additional resources that a specialist IT support provider can bring. It’s just like swapping a paramedic for the whole team available in a hospital, but at 70% of the cost.

2.    Rent your software online
‘Renting’ software enables businesses to maximise productivity whilst avoiding the investment costs associated with traditional methods of purchasing software. This works by the IT provider managing and maintaining the software on super secure servers that you can then use and access online. This is often referred to as Software as a Service (Saas) or Software + Services (S+S).  Microsoft, for example, now charge just £10.04 per user, per month for Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Office Live Meeting, and Microsoft Office Communications Online. Google even has a set of free hosted applications called Google Apps. 

3.    Eliminate travel costs
It is more important than ever to keep in touch regularly with customers and partners, however this may be challenging if like many your travel budget has been cut. Businesses can now utilise technology to have online meetings and save money on travel, as well as saving the time that travelling takes you out of the office.  You can get started on Microsoft Office Live Meeting for just £3.01 per user per month!

4.    Fixed monthly IT costs
If you currently have a ‘break-fix’  agreement with your IT support provider, consider moving to a Managed Service. This proactive support approach gives you the reassurance of system availability through guaranteed service level agreements at a fixed monthly cost and eliminates fluctuating, unpredictable costs as well as unproductive ‘downtime’ for your staff.

5.    Spread the costs of investments
Upfront investment is difficult to justify with so many demands on cash reserves, particularly when the benefits of the solution are received into the business over a period of time. There is a solution – Financing allows you to pay for the solution as your organisation realises the benefit from it.  Reduce your investment to a manageable and predictable monthly payment and free up cash reserves. There are deals to take advantage of, Microsoft currently has a ‘zero payments for 6 months’ promotion, very useful at the moment!

To find out more about these issues feel free to contact Solsoft on 0845 073 0930 or email asktheexpert@solsoft.co.uk


0845 073 0930

contact@solsoft.co.uk