IT costs can add up quickly and cause a business’s bottom line to dip into the red. From hardware and software purchases to teams that are not being used efficiently, IT costs can soar beyond the typical three-to-five percent set aside for them within the budget.
These costs can climb gradually over time, which is why it is important to stay on top of them before they consume too many company resources. Preventing this requires optimizing how both human and capital resources are being used.
The following are methods that help control IT costs while enhancing both efficiency and performance.
Personnel Management
Personnel represent the greatest expense for any organization, which makes efficiently managing them a priority task.
The larger the organization, the more likely it is that there are too many managers overseeing too few technical staff. Resolving this is as simple as realigning the staff ratio. Another effective technique is to keep the IT department slightly understaffed. This ensures that there is plenty of work to go around without anyone idling.
One caveat is this: it’s always a wise idea to have an outsourcing plan in place. This will cover operations in the event of an emergency or during periods where increased workloads arise.
Continued Training
It is also advisable that priority be given within the budget to continuing education programs. IT is a fast moving, fast changing field, and the better educated employees are, the better positioned the company will be to benefit from new technologies and capabilities.
Continued training also will keep IT personnel focused on their specialties and core competencies, both of which will drive productivity and increase efficiency. That said, investments should still be made to cross-train teams so that they can fill in and assist one another if the need arises.
Communication
Foster an environment where open and straightforward communication is the norm.
IT personnel working within an environment where ideas can be hashed out from concept to integration are a force to be reckoned with. Putting their minds to work and encouraging them to pool their intelligence is always a wise idea.
When coupled with continuing education programs, the ideas the IT team will generate will drive a company right past the competition. This is especially true when incentives are used to encourage creative solutions and foster friendly competition within the IT structure.
Physical Assets and Virtual Resources
Physical assets and virtual resources represent considerable investments.
Moving away from the cyclic PC desktop towards a virtual desktop model provides more flexibility and cuts costs. Additionally, it makes it easier for personnel to share resources and utilize both software and hardware to their full extent, which is one reason why more organizations are moving in this direction.
Another option to consider is the adoption of open source products. The use of open source programming can free up significant resources within the budget without negatively impacting IT operations.
Audits and Contract Negotiations
Audits of personnel, physical assets, and virtual resources should be conducted frequently to ensure each is performing at peak efficiency.
Audits will reveal the extent to which physical and virtual resources are being utilized. If it is determined that needs are changing and resources are being wasted, contracts with vendors and suppliers must be flexible enough to allow for modifications and amendment. To facilitate this, it is important to foster strong relationships with suppliers and vendors so that contracts can be renegotiated quickly and efficiently.