How Can CFOs Decrease the Costs of IT

cutting-technology-costs (1)CFOs are faced with the increasing cost of maintaining and buying latest technologies that helps their business run effectively and maintain the productivity of their workforce. With the evolving IT environment and its increasing complexity, new applications launched almost every day, the growing demand of bring your own device trend and so much more, it gets difficult to handle all the spending. It is important for CFOs to opt for cost effective strategies and be on a lookout for opportunities to decrease the growing IT costs.

Currently, there are three great opportunities that can help CFOs in reducing those costs while decreasing the technology breakdown risks and enhancing ROI in their IT investments.

Transitioning to Cloud

As per the business size, around two thirds of SMBs are still operating an in-house server. But from the past few years, opting for third part service has proven to deliver drastic opex and capex savings. Majority of software venders offer SaaS in their package with a monthly pricing. However, the CFOs must be fully aware about pricing accelerators and other similar schemes that the vendors might utilize to drive the business’ spending upwards. Aside from that risk, SaaS feature can enhance the business access to the best available software at reduced cost.

Opting For One-Stop Provider

A study conducted by Gartner research demonstrated that the average vendors a normal midsize business works with significantly rose from 3.7 to 10 during the years 2005 and 2010. The difference about of vendors being used by companies include those that offer solutions for CRM, mobile devices, remote access, tech support, network administration, e-commerce, payroll, accounting, website hosting, data backup and security, and emails. There are many technology brands that are working to enhance their features in order to become a full service IT solution providers for companies. This means that these providers are bound to offer discounted packages to attract SMBs to opt for their one-stop services. This will help CFOs in drastically decreasing cost associated in working with different vendors.

Fixing Problems Before They Emerge

Majority of SMBs have the ‘don’t fix if it isn’t broken’ mentality when maintaining their IT infrastructure and they usually wait for a server or a PC to breakdown before asking the IT support to fix the problem. This indicates that an SMB calls tech-support company numerous times throughout the year and pay additional costs to get onsite support to fix the broken server or PC. There are many IT support providers that offer routine check and maintenance of networks and devices to look for any potential failures or alarms. Initially these services were too expensive for SMBs to opt for but thanks to the low cost and high speed of broadband connectivity, and introduction of support software and tools to decrease the cost of onsite visits, the prices of these services have decreased. It is best for CFOs to have their IT infrastructure regularly maintained and checked to avoid additional cost of repairs.

The IT environment is rapidly changing and it is essential for CFOs to be up-to-date about these changes and latest trends. On one hand, these new technologies offer abundance of opportunities to enhance efficiencies and facilitate growth, there are many downsides associated with them to including bigger risks and higher costs. However with effective and proactive management, a CFO can manage to decrease the overall IT expenses of the business.

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How Can CFOs Decrease the Costs of IT
As CFOs of a small business, you’re likely experiencing the growing cost of buying and maintaining all the technology that keeps your business running and your workforce productive.