HomeBlogBusiness ProcessHow to help the IT department reduce cost by quantifying and demonstrating better performance

How to help the IT department reduce cost by quantifying and demonstrating better performance

We are a nation moving towards a digital world, and with the continuous growth in technology – and thanks to ecommerce – most industries operate their business inside a circuit of globalised market systems. It is difficult now to even imagine a world in which IT did not exist, and everything was done by hand. Thank goodness for change.

It is important for businesses to manage their costs in every department, and the IT department is no different. But utilising your IT department to help you quantify your data and demonstrate better performance can actually save you money in the long run. Your IT department can help you to enhance your productivity and enhance your performance.

Here are some of the ways your IT department can inform your business when it comes to saving costs.


By informing you of useful technology

IT staff should be keeping up to date with the latest cost-saving technological advancements, especially if you are a small business. They can advise you on the best teleconference and online payment services for you, because they know how you use these products and what your needs are. You might be using packages that are more expensive than you need, for example. Your IT department should be checking this, and advising you where you can make cost cuts.

They’ll know where your technology is really aiding your performance and where there is a cheaper alternative you can use that will make no real difference.


By helping you go paperless

Not only is the cost of paper and ink expensive, it is terrible for the environment to print so much stuff. Your IT department can help you transition to a digital invoice and payment system, for example, or help you with file sharing software that stops the need for printing physical documents and landing them on someone else’s desk.


By giving you a comprehensive prediction of IT costs so that you can account for them

All departments should be doing this, so that you can forecast. Of course things always change, especially in the current climate. Your IT department is no different. They should be forecasting your IT costs and the costs of your consultants etc to help stop the potential financial consequences that come with a sudden IT cost. They should be quantifying and demonstrating their own performance and showing how they are working towards cutting costs for the business overall. This should be a yearly activity, and reviewed quarterly.


By letting you know where you can cut back on software costs

How many applications are your staff using every day? Are there cheaper alternatives? Are there apps that hardly anyone is using, or nobody is using at all. If so, it might be time to cut back on your software costs to save money, and your IT department will have a good idea where those cuts can be made. They can also work with your account team to determine cheaper (or free) alternatives to the systems you use to cut back on costs. They can do this by looking at where a specific software is imperative to the performance of the business, and where it is not, and therefore could be replaced for a cheaper alternative.


By buying high quality and refurbished equipment

Your IT department is likely responsible for setting staff up with the equipment they need, and this is no doubt a serious expense! They should have a good idea where you can get high quality refurbished equipment for a fraction of the price you would pay for brand new computers and printers. If not, ask them to do a little research. They might have networks of people who know where to get things from.

They should know where brand new equipment is essential and where it is not needed, and could be replaced for a cheaper alternative.


By looking for ways you can ditch your landline

Traditional telephone lines can be an expensive and costly business cost, especially if you are a small business. But there are alternatives, and your IT department should be able to inform you of these, because they should know what your business needs when it comes to telephones.

Virtual phone lines, for example, are often a cheaper alternative. They might not be totally suitable depending on what you use your phone for, but if your IT department are aware of how your landline network works and what your usage is, they might have some great ideas on cutting costs.


Reducing department expenses generally

The IT department might run up an expensive list of expenses, and it is important you keep an eye on this, as it might be your most costly department. Make sure you are informing them of how important money savings are, so that they are spending every penny carefully. They know where your team’s key IT needs are, and will be able to show you where there is a need for the expensive stuff in order to aid performance, and where there is no real need for the costly items.


Your IT department are important when it comes to the data you need to cut costs

Your IT department is not just there to set up computers. They have an overwhelming amount of quantifiable data that can help demonstrate good performance, and where costs can be cut without impacting it, thus increasing gross costs.

Make it clear to your team that you expect them to help your company function, but you also expect them to do it for as cheaply as they possibly can. They have so much data, they really can help you. You might not think of them as cost saving experts, but they can be, if it is made clear to them that they’re expected to use the data they have to inform spending on IT and how you use it – a very important part of your company.

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