How to Stretch your IT Budget?

Keeping pace with today’s intensely competitive business environment demands an IT function that is responsive and efficient. Today, we need technology that transforms the business but achieved with a smaller budget. So how do you stretch your IT budget without losing efficiency?

By Hitan Mehta, Acuutech


Here are five techniques to deal with your budget. 


1. Review Sources of IT Infrastructure Cost


A good starting point would be to reassess your current IT expenses. Determine what you truly need. List what’s necessary, what’s optional, and what you can eliminate. It’s common for businesses to buy the latest and greatest technology without putting it all to use. Perform an audit of everything contributing to your technology expenses to give you a good idea of what’s really necessary. While upgrades are important, it’s often possible to get by without being fully up-to-date on everything.


2. Minimise Spend


Cut power consumption from mechanical and electrical equipment by looking at newer energy-efficient approaches to data centre designs that take up less space, utilise less power and cost much less. Streamline the allocation of costly labour and support delivery by driving calls down to the lowest tier level that can satisfactorily resolve users’ issues. Ensure to implement standard practices to improve service management and quality. Review and renegotiate telecom service contracts and network claims from market vendors. Discounts on certain services can yield some serious benefits. IT vendors naturally want to keep clients on board; many are willing to come up with agreeable payment plans for both parties. Try to bundle packages with fewer vendors to simplify operations.


3. Consolidate, Virtualise and Optimise for Efficiency


Enable your IT department to do more with less by consolidating infrastructure and operations. Encourage virtualisation of hardware, which translates into lower operating depreciation costs and less-expensive maintenance and support. Virtualisation can be applied to many platforms: UNIX servers, storage, networking and client computing.


4. Enhance IT Asset Management


Tracking and analysing your assets and how you’re using these help you identify areas that offer additional opportunity to reduce IT infrastructure cost. Asset management tools determine the life of certain assets, defer upgrades and eliminate or combine software licences, as well as replace certain maintenance service contracts with a time and- materials approach.


Asset Management can strategically pick and choose exactly the right combination of sources and you could devise SLAs tailored to your company’s IT and overall goals. It’s a recipe for quality and flexibility.


5. Plan Ahead for a Brighter Future


A key part of effective IT cost reduction strategies is to actually plan ahead and equip your IT teams so that they can handle future business challenges in areas ranging from personal IT support to mobile applications to cloud computing. Align IT with the business and vice versa by being proactive and not reactive.



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