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Many businesses make the mistake of not optimizing their IT processes, which results in unnecessary expenses. The good news is that you can easily rectify this issue through meticulous planning and by implementing the best practices. As a result, you can experience numerous immediate but also long-term benefits.

According to IT Management Solution, an IT services company from Boston, you can save lots of money through simple standardization. These experts also recommend outsourcing and contract renegotiation as a good way to save (or earn) money.

Nevertheless, that doesn’t mean that all cost-cutting measures are welcome. Radical moves, in particular, can be extremely counterproductive potentially having a major toll on your finances. To help you out, we’ve listed the best, most effective IT cost-reduction measures that will propel your long-term growth.

1.    Invest in Cloud Computing

Cloud computing solutions can provide numerous benefits that on-site systems cannot. Most notably, they can eliminate on-premises hosting, which can easily eat away your IT budget. External providers will be responsible for data storage, servers, and networking equipment, allowing you to reap the benefits of advanced software without extra expenses.

Cloud providers generally charge you based on consumption, which is fantastic for smaller brands with limited IT needs. The very nature of clouds allows you to scale processes almost indefinitely, allowing you to grow uninterrupted. We also need to mention that relying on SaaS products will minimize your internal maintenance needs.

2.    Virtualize Servers

While relying on external servers is a fantastic cost-saving measure, there are still cases where companies would require their own infrastructure. In these cases, you might consider using virtualized servers to run several servers on a single machine. This tactic provides numerous benefits for businesses, including lower maintenance, less hardware, and lower power consumption.

When you virtualize in-house servers, you also need less space, resulting in lower rents and other property costs. Since you won’t need the same massive infrastructure, you can sell some of your assets or simply retire them.

3.    Outsource IT

Perhaps the easiest, most straightforward way of reducing your IT costs is by outsourcing it to a country with cheaper labor. Given the high cost of the workforce in countries such as the US and the UK, this small move can save you thousands and thousands of dollars each month.

Besides lower salaries, another great thing about outsourcing is that it allows you to hire people based on your current needs. You don’t have to hire experts full-time, nor do you have to cover their insurance and other associated costs and benefits. As these guys won’t be in your office, you can also save money on rent and supplies.

4.    Optimize Your IT

Every business should create effective workflows and streamline its daily IT procedures. By implementing the best practices according to your specific needs, you can achieve higher productivity while eliminating common errors.

A company can optimize just about any tech process, ranging from handling user requests to managing and implementing workflows, IT reporting, IT incident resolving, and modifying existing IT infrastructure. Through optimization, brands can significantly reduce their labor costs as they’ll require fewer people for specific tasks. These improvements result in higher consistency and quality of IT services.

5.    Remove Unnecessary Assets

We’ve already mentioned that you can sell and retire some of the older hardware after you virtualize servers. However, these aren’t the only assets you can eliminate from your asset sheets. A good way for a company to reduce costs is by eliminating any hardware and infrastructure that is outdated, redundant, underutilized, or that simply doesn’t serve your needs anymore.

For example, you can eliminate services and subscriptions, old IT projects, application licenses, and infrastructure assets. While performing asset analysis, you can also compare your current systems with other options on the market and switch to better solutions.

6.    Use Open-Source

Introducing numerous open-source programs can significantly reduce your month-to-month expenses. Although some of these solutions might not be on the same level as their commercial counterparts, the differences are so meager that you’ll barely notice them. However, you’ll definitely notice lower expenses.

An excellent thing about open-source software is that you can tap things into their respective communities for support. By visiting official forums, you can learn more about updates, security patches, and bug fixes and learn how to utilize the program more efficiently.

7.    Standardize IT

Standardization is one of the best methods for reducing the complexity of processes. Companies can standardize various assets, including software, hardware, documentation, IT policies, and configurations. Besides making things easier for you and your employees, the process can also reduce shadow IT risks and address other security threats.

8.    Renegotiate Contracts and Terms

You should never be afraid to renegotiate contracts with your suppliers, ISPs, and other providers. Depending on how good you are, you can save from 10% to 30% of your hard-earned money with this simple trick. However, while negotiation is an incredible method to cut costs, it shouldn’t be done blindly.

It’s vital for a company to assess the current market state to better understand what’s out there. For example, trying to lower suppliers’ prices when they’re already low can only alienate your partners. On the other hand, if a provider is taking you for a ride, you can use real-world data against them to negotiate better terms.

9.    Automate Processes

In the last few years, there’s more and more talk about the benefits of AI and automation. Like in other industries, IT professionals can use specialized software to prioritize tasks, expedite repetitive tasks, eliminate bottlenecks, ensure consistency and quality, as well as reduce various discrepancies and errors.

10.   Implement Remote Work

Many businesses are still reluctant to use remote work to their advantage. Nevertheless, by allowing your employees to work from home, you can experience numerous cost-cutting and other benefits. Among others, you can reduce community and associated expenses for the staff, reduce office supplies’ usage, reduce infrastructure costs, and boost the team’s morale.