6 ways to cut your operating costs with IT
As the calendar year draws to a close, many a business owner will spend some time on a deck chair contemplating how they can increase or maintain profitability in the coming year.
Technology now more than ever is offering increasing efficiencies and savings to businesses having the flow on effect of cutting operating costs. Just this week Coca Cola Amatil CEO was quoted in BRW espousing the business benefits for investing in IT “I don’t believe fast-moving consumer goods companies save their way to greatness. Investing in technology innovation generates efficiencies”.
Whilst we’d all love to have Coca Cola’s balance sheet, there are still many affordable ways that smaller, growing businesses can invest in IT for increased productivity and cost savings.
6 simple ways that businesses small or large can reduce their IT costs and improve efficiencies are:
1. Use IP Telephony:
Migrating your telephone system from ISDN on landline technology to telephony over the internet will in most cases significantly reduce your telephony. IP telephony systems also tend to be smarter and more scalable leading to increased productivity.
2. Use Software as a Service vs buying licensed software
Most businesses pay for software such as Microsoft Office for each of their desktops as a one off cost and then pay for future upgrades. You can now subscribe to software on a monthly basis which users access from any device, wherever they are. For example Microsoft Office 365 can replace the need for you to pay for individual Microsoft Office Licenses. This means that you don’t have ongoing costs of installing and updating software but simply pay by the month. When you have staff changes you can quickly change your subscription as you need to.
3. Subscription based services and leasing vs buying hardware
Instead of investing in your own server equipment for central hosting of data or buying new desktops, you can lease them, preserving cash flow.
4. Cut out the wastage
So often when we do an audit of a client’s IT we find that the number of users does not correlate to the number of licenses being paid for. Poorly managed auditing of users vs licensing is wasteful of precious capital. Implementing a system for staying on top of licenses and subscriptions will ensure you are not spending money on resources not being used.
Similarly with phone lines. When we audit a clients telephony bills, we’ll find phone lines that are dormant but are costing the business money in line rental and other fees. A business can also own dormant domain names that are not used but are costing renewal fees.
5. Outsource your IT support and maintenance
The cost of employing IT staff to manage your IT effectively can far outweigh the cost of outsourcing all of some components of your IT. We have had clients save $45,000 in one year by outsourcing vs employing.
6. Automate business processes through software
Software is advancing at a rate we have never witnessed before in our time. Most of those advances are enabling businesses to automate process they used to employ people to do. A great example is accounting software like Xero that allows you to automatically send payment reminders to accounts past a pre-configured number of days reducing the need for accounts receivable personnel.
Contact us if you’d like to take advantage of a no obligation consultation on how you can reduce your IT costs and improve your productivity.