The need to keep costs down and profits high was a constant in business long before technology took over. That basic concept remains true regardless of how far we advance.
But given how dependent business operations are on things like network maintenance, cybersecurity, and cloud infrastructure, it’s simple for IT costs to spiral out of control.
As per research, 51% of businesses are planning to increase IT spending in 2024, which means that 49% are either trying to reduce it or keep it the same.
The challenge is maintaining competitiveness while preventing cybersecurity incidents and not overspending.
You can keep up with others in your business technologically and save your tech costs at the same time, so it’s not a “either/or” situation.
How To Avoid Overpaying On Tech
You can avoid overpaying on tech in the following ways:
Audit Internet Regularly
Many people believe that the only time you need think about your internet is when your contract is about to expire, when you move, or when you require more bandwidth. (Or, of course, if it isn’t down.) Yet, the reality is that any concessions you may have had when you signed up have probably expired, and there’s a strong chance you might get a better deal if you called to renegotiate.
To prevent overpaying, audit your internet at least once a year. Find out about the deals that are available and how you may benefit from them. Your technology partner could be able to negotiate a bargain even better than you can if they have contacts with the provider.
Avoid Purchasing Licenses You Don’t Need
Software licensing policies vary between software vendors, and many even provide discounts for upfront license purchases. But, this is only a deal if you eventually use the licenses; otherwise, your money would be wasted. Mainly paying for only the licenses you need immediately and adding additional ones as you need them will be more reasonable.
Beware Of Hidden Costs
You undoubtedly anticipate paying expenses for software licenses, implementation, and training for your new program. But be cautious to enquire about additional expenses with the software providers you’re considering:
- Pricing tiers – user licenses, records, transactions, etc. Can increase when your product grows.
- Add-on fees – advanced support
- Associated costs – a server that might run on-site at your organization
- Product upgrade fees
Dive Deep Into Your Recurring Bills
Make sure you carefully review each bill and understand what it pertains to and why you are paying it. We often see businesses paying for services they are unsure of still using. They continue to pay for the service each month out of concern that if they don’t, something would break.
Automate Processes
You can lower operating expenses by reducing manual, tiresome, and repetitive work with automation. By automating repetitive but necessary operations, you can improve workflow efficiencies and free up your staff to work on more valuable projects, ultimately reducing costs while boosting profits.
You are more likely to make costly mistakes the more manual tasks you perform. Generally, automated systems operate more consistently than humans, eventually leading to better control and less variability. As a result, your work will be of higher quality, and clients and possible business partners will see you more positively.
To deliver your project on time and within your budget, you can automate procedures and align them. Every employee has their own way of doing things, and it might be expensive to accommodate these variations across several employees.
Hire An MSP
Working with an IT MSP company to establish and understand what tools will be put in place and the schedule for the implementation before you start a major technology project can be helpful. Despite the fact that it may seem like an additional expense, using the services company’s expertise could end up saving you money and staff time.
Finally
Saving a little bit here and there on small subscription services adds up over time. Even a few dollars a month that don’t seem like much might add up over time. This is a significant achievement for a small firm when coupled with cost savings from using several providers. When it comes to your business budget, every bit helps. Make sure you take the time to review your contracts every year and look into the aspects of your technology that you may be overpaying for.
Work with XO to Lower Tech Costs
XO can assist your organization in lowering tech costs while guaranteeing that your infrastructure is reliable and your business stays competitive.
Schedule a free technology consultation today! Contact us today.
