As technology becomes more and more integrated with business operations, business owners struggle to find ways on how to cut back expenses on IT. Although changes that are practical may vary between individual companies, there are several options that should work across the board.

Here are four ways to help you reduce your costs without sacrificing your business’ efficiency.

Tip #1 Identify what you truly need

Buying the latest and greatest technology without putting it all to use is something that is common for businesses. Make an audit of computers, hardware, software, and other things that are contributing to your technology expenses. This way, you’ll have a good idea of which of your business assets are really necessary.

Though it’s true that upgrades are essential, it’s often possible for your business to function without being fully up-to-date on everything. When you’re doing an audit, make a list of what’s necessary, what’s optional, and what you can eliminate.

Tip #2 Get a managed IT department

There are advantages in leaving the technological aspects of your business in the hands of professionals — not only will it save you money, it also lets you streamline your business’ daily operations. There are companies who offer a variety of services such as colocation, dedicated servers, and secure remote access, to keep businesses functioning at an optimal level.

When it comes to data storage, some companies offer cloud servers or a private cloud in order to meet the needs of most businesses. By offering the scalability that expanding businesses needs, and preventing threats from infiltrating a network, considering this can greatly help you save money in the long run.

Tip #3 Negotiate existing contracts

Since IT vendors usually would try all means to keep their existing clients on board as long as possible, many of them are willing to work with you to come up with an agreeable payment plan for both parties. This is highly considered in an economy that’s still experiencing recession. Tight competition among rival vendors can also be beneficial to you, and special deals can be made. Negotiating can yield some serious benefits whether it involves an overall cost reduction, discounts on some services, or a freebie. After all, you will never know your options unless you ask.

Tip #4 Condense and consolidate

If you have multiple contracts with several vendors, your cost can rise considerably. Bundle packages with the least numbers of vendors possible to lessen tech costs and simplify operations. Companies usually offer special bundle deals so multiple aspects of operations can be covered without spending too much.

With all the options available, it’s possible to find a customized plan that keeps your business running smoothly while ensuring data security. You can allot the money you save into other areas, and you will experience an increase in profit margins.

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This entry was posted by Staff Writer on Tuesday, March 3, 2015 at 9:48:32 AM and is filed under Small-Medium Business.

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