5 key ways you can reduce IT costs


5 Key ways you can reduce IT costs


IT leaders can find themselves under pressure to cut costs while still having to deliver transformational technology solutions.

The question remains: How can you cut IT costs without compromising your department and wider needs of the business? Here are five ways that cutting costs can deliver opportunities:


1.    Analyse and consolidate


An obvious place to start is by reviewing your current setup to identify how different systems work together, and establish any legacy systems that may be costing a premium in downtime and repairs.

By looking closely at how software is utilised, you’ll recognise whether cheaper licenses with fewer features would be sufficient. You might also find that some elements of your setup can be removed completely if they’re no longer effective, or if their function has been fulfilled by another tool.

2.    Alignment with business strategy

All of the major IT infrastructure projects we’ve worked on to date have been managed by IT leaders closely aligned with their organisation’s strategy. This alignment and the modifying of systems to suit business needs can deliver greater flexibility for IT leaders when it comes to budgets.

A collaborative approach will enable you to establish the costs that are actually worth it and those that are non-critical to the business. It also means that any investments will support a vital near-term need for the business, whereas those non-essential projects will be postponed until objectives change or budgets are reviewed.

3.    Flatten your organisational structure

Following the theme of aligning IT with business strategy, leaders should turn their attention to department structure. Working closely with other heads and managers in the organisation to achieve a common goal eliminates the need for a complex hierarchy. Instead, a collaborative and team-based model will better serve the needs of the department and the wider business.

Before you think this means cutting staff, consider whether virtual teams could work instead to reduce overheads and administrative costs without the need to review headcount.

4.    Cloud

While the thought of moving your organisation’s IT to the cloud can be daunting, it can eliminate the need for the capital outlay of in-house IT servers and network equipment, instead replacing it with small operating expenses.

Also, because your workloads share server infrastructure with other organisations, the cloud computing provider will optimise the hardware needs of its data centres, without the cost being passed on to you. 

5.    Explore new technologies

New technologies can deliver cost savings and benefit your organisation in the long-term. For example, automation is now able to cover a range of IT functions that would otherwise be handled manually, from the scheduling of work through to performance monitoring and threat detection. Additionally, virtualisation, which reduces the number of servers required through lightweight, portable containers, can significantly reduce capital expenditure of new server hardware.

To find out more about how you can reduce IT costs in your business, speak to a member of the LIMA team today who will be happy to guide you.

Darren Scott