How can I reduce my IT costs?

There are a number of sources of unnecessary IT cost:

  1. IT systems that no longer deliver value. They may still be useful, but they may cost too much for the value they deliver. Therefore: consider replacing with a newer system ( that is cheaper or delivers more value), and don't ignore the possibility of going back to a more manual process. Many expensive systems can be replaced by simple procedures and an Excel spreadsheet!

  2. Multiple IT systems that do not work together. IT systems are introduced to solve particular problems. Over time an organisation can build up a number of systems - often in different departments. These rarely work together well. Costs are then incurred reconciling different sets of data, copying data from one system to another, and supporting multiple systems. In other words, multiple different systems increases complexity and with that complexity comes cost. Therefore: consider ways to simplify your systems as a whole. Would a single package do the job? Can the existing packages be better integrated? Do any of the systems stick out as being more different than the others? Consistency leads to simplicity, which leads to less cost.

  3. Wrong technology choices. We make decisions based on the best information available to us. If that information is incomplete then we make wrong choices. With technology decisions we are heavily reliant on the opinions of 'experts', but unfortunately some 'experts' are less expert than others. So investments are made on an application that is based on a technology that is destined to fail in the market. Support costs go up, and while competitors move forward you remain locked in yesterday. Therefore: make sure you are well advised on your IT investments. Ideally get a second opinion from someone not involved in the sale. Such advice should not be expensive and may only involve a few hours work, and could save you a small fortune in the long run.

  4. IT that does not match the business. Any problem can be solved in a number of ways: least short term cost, greatest efficiency, greatest flexibility, ability to be expanded into other areas, and so on. Choosing an IT implementation without considering the strategy of the business can not only increase your costs, but could jeopardise your business strategy