Last week one of our clients, Margaret, called our support staff. “We’ve saved more than 43% on our IT expenses in the last six months thanks to your outsourced IT,” she told us. How?
Look at your IT department’s hardware and manpower expenses. These are two line-item costs most finance managers ignore as they’re mission-critical factors in your core business. In the last three decades, too many companies have given their IT department’s a pass on expense management. However, new trends in expense management are catching the attention of many CFOs.
Outsourced IT Tip #1
Smart CFOs are investing in virtual outsourcing.
We’ve helped many of them develop a plan to win over their IT department senior technicians to consider the concept. But don’t ignore the human element. Face it, you’ve invested years of time and capital building loyalty among your IT team. The minute you suggest you’re considering outsourced IT, they’ll worry about one thing: job security.
It’s a delicate process. One that requires your IT team to feel as if they’ll remain on the payroll despite your efforts to cost-control your technology. The benefit of virtual outsourcing is that it offers your staffers to be empowered in the process rather than feel like an expense. Ask them to get involved in the vetting process when interviewing prospective off-site contractors.
Outsourced IT Tip #2
Negotiate rather than place orders for new technology products.
Your IT people have years (perhaps decades) of expertise keeping your servers and softwares working. Guess what? They almost always lack the necessary negotiating skills when ordering from vendors.
Are you paying retail? If so, it’s time to give up merely placing orders online and think about negotiating better prices. Have your IT gurus meet with your senior management. Develop a plan to negotiate all future purchases with a projected 10-15% discount.
Outsourced IT Tip #3
Let professional IT services help.
Professional IT services can pinpoint areas in your technology that can be reduced by implementing their outsourced IT protocols. Most of the time they can relieve your IT headaches much faster and more cost-effectively than having your in-house IT resources to do it. Why? Considering the limitation of a usually small in-house IT department: will having one or two part-time IT personnel(s) solve the problems quicker and better than a large and dedicated team of professional IT services?
The only challenge here is how to choose a really good professional IT service vendor – check out this list to get some ideas: although it talks about evaluating in-house IT team, it works equally well for IT outsourcing qualifications.
Outsourced IT Tip #4
Evaluate whether or not your company can benefit from cloud computing. It’s no surprise your IT resources can be scaled by consolidating your storage. Many firms discover by converting their server needs to pay-as-you-go streamlines their initial out-of-pocket expenses.
Some companies are shifting their outsourced IT needs to our Amazon Web Services platform. Since 2006, we’ve been leaders in the process helping organizations migrate their resources to AWS servers.
Outsourced IT Tip #5
Learn how companies have moved their outsourced IT into an AWS quick start package. We recommend a transitional migration. Doing so allows you to try before you buy into the concept of moving all of your IT needs in one fell swoop. If you need help analyzing your outsourced IT possibilities, contact us today.