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How you can reduce IT expenditure in FY 2021/2022

Businesses are always looking for ways to reduce expenditure. But, over the past 18 months, this has become even more crucial, with many organisations being forced to scrutinise their expenses and make significant savings to optimise company profitability.

For many businesses, the cost of IT equipment, set-up, and maintenance contributes significantly to their overall expenditure, making it a natural focal point when looking to make savings. 

The good news is, there are a number of ways to reduce your IT expenditure in 2021/2022.

What are IT costs?

Many businesses simply cannot function without the support of IT, making hardware, software, and servers an expensive outgoing. 

It is, however, possible to cut IT costs, without it having an impact on your day to day business operations.

IT cost reduction involves identifying and eliminating sources of IT waste or IT that has little business value. This allows businesses to reduce their IT budget, and reinvest wisely in new technology that streamlines business processes and optimises growth opportunities.

IT costs typically include:

  • Hardware
  • Equipment
  • Devices
  • Software
  • Personnel
  • Outsourcing
  • Disaster recovery

How to reduce IT expenditure

Here are 6 ways to reduce your IT expenditure for the financial year 2021/22.

Look carefully at your IT outgoings

First and foremost, you should look carefully at your IT expenditure. Looking at your accounts in detail will allow give you an idea of where you stand financially and how much you can ring-fence for your IT budget.

Once you understand fully the extent of your spending on IT services and hardware, you’ll be in a better place to consider reducing spending in selected areas.

Instant reductions

Once you have a clear understanding of what you’re spending and why, as well as the amount you’d like to reduce your spending, you’ll be able to identify areas where you can start making savings.

There may be opportunities to make savings on software, equipment, hardware, as well as internal and external IT roles.

Look for savings that will make an immediate impact, rather than those that will provide benefits in several years. And try to focus on costs that can be reduced or eliminated, rather than just frozen or passed over to a different part of the budget.

Use the cloud

Investing in cloud-based solutions can be much cheaper than investing in on-site storage and hardware. Rather than buying expensive systems and equipment, cloud services will allow you to utilise the latest tools, without having to worry about systems upgrades and new hardware and software.

Review software agreements

If your business pays to license software, review your license agreements to see if there are ways to implement cost savings. This could mean renegotiating the subscription, removing, or reducing software that you don’t use, or moving to a better price plan.

Staff and services

Streamlining or outsourcing some of your IT staff and services can help cut expenditure, giving you access to specific expertise when you need it. Managed services providers can give you access to services such as IT help desk support, security, disaster recovery, and backup services, without needing a full, in-house team.

Leasing IT equipment

Leasing your IT equipment, rather than buying it outright, will allow you to make significant IT savings. Keeping up to date with the latest IT equipment can be incredibly costly, particularly if you are expanding your business and need to invest in lots of equipment at the same time.

With leasing, you can access the latest equipment and spread the cost at the time. This not only removes the need for an initial investment but also reduces the costs associated with maintenance and equipment upgrades.

Why choose CHG-MERIDIAN?

Looking to reduce your IT expenditure in 2021/22? Look no further than CHG-MERIDIAN.

Here at CHG-MERIDIAN, we can help you stay ahead of your competition with tailored leasing solutions that keep you on top of the latest market technologies and trends. If you want to find out how we can help your business, get in touch today.  Our friendly, helpful, and professional team is always on hand to help.