Management and Finances

Start Reducing Your IT Costs

Delivering IT solutions at an appropriate price point is a chief goal among all IT leaders, and it’s important to stay savvy about reducing costs. One tech writer has identified and outlined several cost areas that you can optimize to deliver the most value to your partners within the business.

Bob Ronan writes, “IT costs are an expensive component of any organization’s budget. Cutting these costs can be difficult when there are so many other priorities and the fact that many costs seem like they are fixed. This article will show that many IT costs are not as fixed as they might appear and offers suggestions for reducing the IT budget.

“When looking at most IT budgets, personnel costs are often the predominant expense. Fortunately, there are many strategies for reducing labor costs and I will discuss these in the first section of this post. But, there are other costs which can be reduced as well and so I have added a second section to deal with these less obvious opportunities.

“One of the most effective strategies for cutting costs in your IT organization is very easy to implement; simply publish a metric each month of the money you have saved from your cost-cutting initiatives and celebrate when you have a major accomplishment. Metrics are a great way to influence behavior and having a published number will encourage your organization to focus on reducing costs. For more information on metrics, see my article on how to use metrics for IT success.

Read on for a dozen ways to reduce your IT costs.