3 Effective Techniques To Slash Your Enterprise IT Bill

IT is an engine of growth in most companies. It provides the technology needed to make substantial productivity improvements. Like all departments, lean systems can develop pockets of waste that hinder company performance. Here are three effective techniques proven to help you slash your enterprise IT bill.

Renegotiate Existing Contracts

One of the most effective techniques to slash your enterprise IT bill is to renegotiate existing contracts. IT is an area where you should continually get more for the same amount of spend. This means higher equipment quality, faster processors, and more bandwidth. Unfortunately, some contracts lock you with a concrete feature set and incremental price increases.

Renegotiating these contracts to provide better features and lower prices are an immediate savings on your IT services bill. If your current vendor is unable to slash your IT bill then it’s time to look for a vendor that will. The IT services industry is very competitive and vendors are always looking for new customers.

This could also present a great opportunity to consolidate vendor relationships. Consolidated vendor relationships can often result in bundling discounts that will further reduce your IT spend. Involve appropriate departments when bundled discounts cross departmental lines. Look at the company as whole. An optimal solution for one single department may be suboptimal for the company.

Prioritize Project Spending

IT managers always seem to have several IT projects on the table at any time. Some are truly needed while others are merely dream projects. Each project should be evaluated based on return on investment. Some projects are solely cost savings projects while others result in increased revenues. Implementing the projects that result in the highest short-term ROI can have the effect of quickly reducing the IT portion of operating expenses.

Optimize IT Services

Once you’ve renegotiated existing contracts and have prioritized your project spending based on ROI, then it’s good time to optimize your IT services. It’s a chance to standardize your servers so that you are using one standard server across your enterprise. If you are keeping your IT in-house, then it’s a smart idea to go with HP Enterprise. You gain a solid and reliable IT infrastructure that is focused on helping you make money. Moreover, downtime is limited since repair parts for HP Enterprise are readily available.

As you optimize your IT services, you shouldn’t just look at your servers but you should also take a look at your software usage. If you are paying licenses for software that you are not using, then you realize immediate savings by terminating those licenses. Likewise, you can also check out open source solutions that are realistic alternatives for subscription based licensed software. For example, Amazon customer service uses Ubuntu Linux for its agents. This results in substantial savings on each workstation. Open source alternatives are not always realistic, but some open source alternatives are superior.

These three effective techniques are just a start towards slashing your enterprise IT bill. As you work through these techniques, you will discover other ways to reduce your IT bill. You’ll discover pockets of waste where you didn’t think you’d find it. As you do, you’ll improve your company’s performance while creating a leaner and more responsive IT department.

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About Author: Carol Clark