A CFO’s Guide

5 practical ways CFOs can reduce IT costs

5 practical ways CFOs can reduce IT costs

Are you under pressure to reduce your IT costs due to the COVID-19 outbreak? Many CFOs are now feeling the pressure to reduce operating costs wherever possible. Considering the current situation where businesses are highly relying on technology, cost reduction in the IT department may seem impossible. The good news is there are many strategies you can use to cut IT costs without harming the IT department or the overall company.

  1. Move to the cloud Moving to the cloud may be a daunting thought, but it can be an effective way to curb IT costs. Cost reduction is a leading driver of public cloud IaaS adoption. In a recent Gartner survey, the majority of respondents considered cost savings as one of the main reasons for moving to the cloud. A recent market research by Vanson Bourne revealed that the cloud helps companies save:
    • 16.18% of operational costs
    • 15.07% of total IT spending
    • 16.76% on IT maintenance
  2. Travel costs Are you spending a large amount of your budget on travel for face-to-face meetings? With the use of Office 365’s collaboration solutions, respondents can use Skype for Business and Teams for meetings across geographies, ranging from small to large groups, with no travel involved. According to a Forrester report, O365 yields an ROI of 112%, with a payback period of 10 months after “go-live”.
  3. Reducing personnel costs This one can be challenging, but sometimes it’s necessary to bite the bullet and review your IT staff. Many IT departments become overloaded with staff, which naturally happens over time. However, more staff means more personnel costs. It may be necessary to consider reducing your IT staff to cut costs. In some cases, outsourcing some of your IT function (commonly referred as IT Co-Sourcing) may just be the right solution. Managed Service Providers (MSPs) can manage, host and maintain your organisation’s IT infrastructure while complimenting your in-house IT function.
  4. Automation Many IT service requests take the form of granting permissions for things like password reset, access to printers and shared folders etc. Each of these requests take up time in an IT admin’s day – time which the organisation has to pay for at approx. £40+ an hour. The right IT partner should be able automate these tasks for you.
  5. Hardware Has your company done a recent IT audit of your IT infrastructure? An audit can point out issues that may be costing your company money. For instance, underutilised hardware, applications and devices that aren’t necessary all need to be maintained and repaired.

Conclusion:

Using the right combination of advice from your IT partner and the technology available today, you can reduce your operating costs significantly. Your company doesn’t have to sacrifice quality—it just comes down to optimising technology, services, staff, etc. in creative ways that keep your business running both efficiently and effectively.

Microsoft modern workplace is designed to help you reduce costs, while enabling a more proctuctive work environment. Download our guide to discover how a modern workplace can help you control costs, understand what it looks like, it’s benefits, how much does it cost to implement and some practical tips on how to take your first step.

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