Banking And Finance
For any Chief Information Officer, securing the business essentials is paramount, but doing it at a lower cost is harder. However, when the company must tighten its belt for whatever reason, then that equally applies to the IT department too. Here is a guide to CIOs for saving money in their department. Also check, Money Brighter. Its team of experts can help you run your business and manage your finances like a pro.
While it’s unpleasant to do, the payroll cost for the staff is often the largest expense of all. To make significant cost savings, it’s often required to pare down the team. Reassess the team to see which roles can be merged, those that are required, and where the line can be drawn. Ensure that essential activities aren’t going to suffer or that customers will be affected by the changes.
For example, if response times to troubleshoot PC issues for frontline staff will increase, then that needs serious consideration before going ahead with cutbacks. If necessary, further discussion with the person spearheading the budgetary reduction program should happen to clarify how deep the cuts must necessarily be.
Business insurance is sometimes a service that someone sets up once and then simply renews annually. It could be many years since the premiums were looked at to see if there are cheap business insurance policies available with sufficient coverage. Review what cover is required at a minimum, in the mid-range, and at the top-end. See what the business currently has and whether it’s still necessary to be at that level. Also, the insurance may have IT-related cover that’s either beyond what’s relevant or unnecessary because it’s covered in other ways. See if there are possible exclusions or whether a higher deductible could be arranged to reduce the premiums for the coming year. It can always be increased in subsequent years.
It seems like every company is offering subscriptions right now. They’ve fallen in love with the reoccurring business model of multiple subscription plans with ongoing monthly, quarterly, or annual billing. However, it ties companies into buying once, forgetting about it, and often overpaying for services that aren’t needed. It’s time to examine every reoccurring subscription in the technology department. This means all subscriptions, hosting bills, cloud storage, VoIP, and whatever else have been subscribed to already.
What is still required? Are there new plans available that will still provide what’s required for the business but will need a little adjustment in how people work? Is that going to be manageable while not affecting the service level delivered?
Following on from the previous section, do a deep dive into all the software used within the business. This includes physical packages, downloaded ones, mobile apps, SaaS, and so on. For most IT departments, the list is expansive with considerable overlap between different software packages. Look at whether it would be convenient to stop using one solution and instead integrate it with a few others with enough features to keep employees happy.
Beyond that, see about switching from a standard option to a lesser one that will still get the job done. For instance, there are plenty of Word and Excel equivalents including OpenOffice, LibreOffice, Office Online, and Google Sheets/Docs too. Paying for a broad suite of Microsoft 365 apps for all employees is not always unnecessary.
When there is the option to choose between multiple vendors, then compare and contrast. See if there is a clear winner or if they’re pretty close to each other in pricing and features. Get in touch with both companies to see if they can beat what the other is offering. While additional added features are fine, make it clear that lower pricing will likely get the deal. Companies may be willing to reduce their prices to get half the profit on a deal rather than losing out to their nearest competitor by holding the line on retail pricing.
Ultimately, while cost-cutting is sometimes unpleasant, it can be a business need to avoid a worse outcome. If employees feel like cuts are coming to staffing or business expenses, then dragging it out creates unnecessary anxiety in the workforce too. Avoid putting it off until later when the cuts likely will be even more severe.