How to save €2 million a year from your IT costs
Businesses that are able to manage their IT costs better, or at least reduce their expenses faster, can reap a huge financial benefit.
The cost of managing your IT business is growing exponentially, and the most effective way to manage IT costs is to look at how much you’re spending, says Joanna Haddad, managing director at consultancy firm PwC Ireland.
Haddag said it is possible to save up to €2m a year by managing your own IT.
“You have to think about how much your IT is costing you, and that can vary from a few dollars to tens of thousands of dollars per month,” she said.
Here’s what you need to know about managing your company’s IT costs.
What is IT?
It is the collection and processing of information that you do online.
IT is a large, diverse industry, and many IT companies collect and process information from all sorts of sources, from the web to social media and email.
It includes everything from email and file transfers to online transactions.
The data you gather from your website is shared with others, like retailers and retailers’ partners.
HADDAD: IT is one of the fastest growing industries in the world, and IT costs account for almost 70% of the total IT costs of an organisation.
The costs are growing rapidly, and some of the most efficient ways to manage these costs are to: Reduce the amount of information your company is gathering, as data can often be wasted when it is used in other areas, HADDAG: IT cost management is a key strategy for IT organisations that want to achieve financial sustainability, and it is a good way to reduce your IT cost.
How much does IT cost?
There are two main ways to calculate IT costs: You can use your current budget, which will give you a ballpark figure, or you can use the IT Cost Report (ITCR), which is based on a percentage of revenue that a business makes from its IT operations.
The ITCR is an important way to look into your IT budget, as it will give an idea of the amount that you have spent on IT, and you will be able to better understand your business.
What are the IT costs?
According to IT experts, IT costs are a very complicated, complex industry, with many different components, and they can range from simple accounting tasks to managing your entire IT infrastructure, as well as IT management.
HADAG: There are several ways to determine IT costs, including: Using the ITCR, which is a simple, straightforward way to compare the IT budget for different departments in your organisation, to calculate your IT Costs for the most common IT functions, and then apply those costs to your overall IT budget.
HENDAG: For example, if you are running a software maintenance service, and your IT staff are making about $25,000 a year, and there is a $10,000 IT budget (which includes salaries and overhead costs), that $10k will give your ITCosts for that year as a whole.
This will give a better picture of how much money you are spending on IT costs in your organization, she said, as there are many other costs that are included in the ITCost report.
How can I reduce IT costs and save money?
A common mistake is to try to manage your IT by doing the following things: Reduce your IT expenses by cutting back on tasks that have to be done in the name of IT, such as the time spent on maintaining the website.
For example: If you have a website that has to do with the payment of invoices and payment processing, then you may want to consider doing a small amount of work to manage the website so that it can function properly.
If you want to keep track of your email accounts, then it is important to monitor those accounts so that they do not get deleted or you lose your email address.
If your IT department is using more than one system to process the same amount of transactions, it is necessary to create a separate system to do each transaction in a separate account, and create separate email addresses for each account.
This ensures that there are no account information that can be used for anything else, like credit cards, or payments.
How do I know if I am saving money?
It may seem like there is not much to do about IT costs if you don’t have any experience with IT, but it is not just a matter of looking at a budget and comparing it with your current expenses.
You can also ask your IT company to look you over for more information about their IT services, to ensure that your IT needs are covered.
For more information on how to cut IT costs for your business, you can read our IT budgeting guide, and check out our IT cost calculator to see how much it will cost you to run your business using the IT methods