Most IT departments have several cost cutting targets, such as
hardware expenditures, software expenditures, staff, and applications. A
company has to be careful how it cuts money from these areas, though,
or it could end up with a bigger problem than an oversized IT budget,
like an IT department that does not provide enough support. Listed below
are some good ways to cut IT costs without compromising the IT system,
Buy Used Hardware. Since the financial crisis of 2008, the used hardware market has been going strong. Companies can receive a discount of 50 percent or more on used IBM servers and other top brands of used servers that have been reconditioned to look and perform like new. Reconditioned hardware is also available with a lifetime warranty, which can make it an even better purchase than new hardware in terms of warranty length.
Implement Energy Saving Methods. There are several ways to save money by being more energy efficient, such as: having personnel power off unused servers, turn off lights in rooms that are not in use, and implementing power saving solutions for desktops (e.g. verdiem surveyor), to name just a few. The green movement keeps pushing forward, and energy efficiency is one of its main concerns. If a company has yet to adopt a green initiative, now might be a good time to do it.
Minimize Mobile Technology investments. PC/mobile convergence is a hot trend at many companies right now, but it pays to savvy about the terms of the convergence. Research shows that only twenty-five percent of employees use 75 percent or more of the minutes on their company provided mobile plan, and 50 percent of workers have mobile services that they never use. Before buying services for 100 new iPhones or BlackBerrys, one should perform a study of how many minutes and services employees really need.
Liquidate Old Hardware. The easiest way to mitigate the cost of new hardware is to liquidate old hardware. Even if used servers do not have resale value - although used IBM servers and other top brand servers commonly do - sell them for the metals they contain. A buyer and seller of used hardware that performs asset disposition can appraise the options for liquidating old hardware.
Use Staff Instead of Consultants. Using the expertise of a company's staff is less expensive than hiring a consultant. If staff members have mentioned cost-cutting opportunities for the IT department, pay attention to what they say instead of hiring a consultant who will bill multiple hours just to arrive at the understanding of the opportunities that staff members already have. The employees are already being paid, so get as much value out of them as possible.
Use Contractors for Temporary Workloads. If there is a temporary workload, do not hire an employee to handle it hoping that by the time workload is complete the person will have more work to do. Plenty of talented people have turned to contracting after being laid off. Take advantage of their willingness to take temporary jobs until the company's workload justifies hiring a full-timer.
Conclusion
There are several ways to cut IT costs without jeopardizing the effectiveness of the IT system. If a company needs to cut costs, consider implementing the measures above. Simple practices such as buying used IBM servers - or any other brand of used servers - practicing energy efficiency, and using staff to solve problems instead of hiring a consultant can save a significant amount of money annually.
Buy Used Hardware. Since the financial crisis of 2008, the used hardware market has been going strong. Companies can receive a discount of 50 percent or more on used IBM servers and other top brands of used servers that have been reconditioned to look and perform like new. Reconditioned hardware is also available with a lifetime warranty, which can make it an even better purchase than new hardware in terms of warranty length.
Implement Energy Saving Methods. There are several ways to save money by being more energy efficient, such as: having personnel power off unused servers, turn off lights in rooms that are not in use, and implementing power saving solutions for desktops (e.g. verdiem surveyor), to name just a few. The green movement keeps pushing forward, and energy efficiency is one of its main concerns. If a company has yet to adopt a green initiative, now might be a good time to do it.
Minimize Mobile Technology investments. PC/mobile convergence is a hot trend at many companies right now, but it pays to savvy about the terms of the convergence. Research shows that only twenty-five percent of employees use 75 percent or more of the minutes on their company provided mobile plan, and 50 percent of workers have mobile services that they never use. Before buying services for 100 new iPhones or BlackBerrys, one should perform a study of how many minutes and services employees really need.
Liquidate Old Hardware. The easiest way to mitigate the cost of new hardware is to liquidate old hardware. Even if used servers do not have resale value - although used IBM servers and other top brand servers commonly do - sell them for the metals they contain. A buyer and seller of used hardware that performs asset disposition can appraise the options for liquidating old hardware.
Use Staff Instead of Consultants. Using the expertise of a company's staff is less expensive than hiring a consultant. If staff members have mentioned cost-cutting opportunities for the IT department, pay attention to what they say instead of hiring a consultant who will bill multiple hours just to arrive at the understanding of the opportunities that staff members already have. The employees are already being paid, so get as much value out of them as possible.
Use Contractors for Temporary Workloads. If there is a temporary workload, do not hire an employee to handle it hoping that by the time workload is complete the person will have more work to do. Plenty of talented people have turned to contracting after being laid off. Take advantage of their willingness to take temporary jobs until the company's workload justifies hiring a full-timer.
Conclusion
There are several ways to cut IT costs without jeopardizing the effectiveness of the IT system. If a company needs to cut costs, consider implementing the measures above. Simple practices such as buying used IBM servers - or any other brand of used servers - practicing energy efficiency, and using staff to solve problems instead of hiring a consultant can save a significant amount of money annually.
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