It’s no secret that can be expensive especially when it comes to business. However, it is the cornerstone of many businesses so it’s not really something that you can easily do away with. Aside from this, IT costs are continuing to rise as technology becomes more advanced so budgeting for it can be difficult.

Luckily, there are ways you can reduce IT costs without sacrificing the quality of your service or security. Here are some ways you can reduce IT costs for your business.

Renegotiate Existing Contracts

Renegotiate existing contract

If you don’t ask then you won’t receive. Some business owners simply sign a contract with their vendors and then leave them as is. What they don’t realize is that could be missing out on deals, promos, price reductions and offers.

Negotiate with your vendors if you’re serious about reducing IT costs. Some benefits include:

  • Get what you want.
  • Receive a good deal.
  • Save money.
  • Win-win situation for both of you.


Some businesses don’t realize that they’re using multiple vendors for different needs. However, consolidating vendors, platforms and software can help you reduce IT costs meaning more spending power. It will also help improve security.

Other benefits of vendor consolidation include:

  • Easier vendor management – fewer vendors mean less relationships to manage.
  • Lesser freight costs – the more vendors you have the higher the freight cost since you have to pay for every fare.
  • Better relationships with vendors – easier to cultivate vendor relationships. Now that you’re spending money on your chosen vendor they will value your relationship more.

Use the Cloud

The cloud has become an indispensable tool for many businesses. Using the cloud can help reduce IT costs because it can eliminate the need for expensive storage hardware kept on-site.

Cloud computing is cost effective because businesses can scale their needs as they arise. It is also efficient because businesses don’t need to worry about underlying infrastructure costs or maintenance. Best of all it gives businesses a technological advantage by providing innovative technology.

Use Open Source Software

Use Open Source Software

Software can be very expensive in terms of purchasing cost and annual maintenance. Luckily there are open source software that can help you eliminate this cost. There are even software that you can customize because you have access to the source code.

Other Benefits Include:

  • Ability to let your start small. You can start with a community version and then upgrade to commercially supported editions as your business grows and expands. If it doesn’t require support you can continue with the community version indefinitely.
  • Solid security. Open source sometimes gets a bad rap in terms of security. However, this is not true because the open source community is very responsive especially when it comes to information security.
  • Attracts better talent. Many industry experts believe that IT is headed towards open source. Many like to create their own projects and have the ability to interact with others to develop solutions. Having the ability to be flexible and free helps to attract better talent.
  • Flexible and agile. Technology is evolving fast so you have to compete not only on flexibility but also agility. If not you’re going to lose to the competition. Open source gives you the ability to be technologically agile especially when it comes to solving problems.

Offshore Outsourcing

It’s no secret that offshore outsourcing is a good way to cut IT costs. There are many talents around the world that offer lower prices in exchange for their abilities. Outsourcing can also give your on-site talents a break. However, work should always be carried accurately and existing workflow should be maintained. This is why you have to hire outsourced talents only from reliable providers.

Use Managed IT Services With Fixed Fees

Use managed IT services that have fixed fees. IT services usually have varied fees depending on your requirements or whether you need it long or short term. However, using services with fixed fees can make your budget easier to manage.

IT services should include security service that protects your business from cyber-attacks. This should help reduce cost because maintaining an in-house cyber security team can be expensive.

IT costs can be expensive but it is essential for all types of businesses that operate on the web. The above strategies are good examples of those that don’t sacrifice quality. These tips can help you free up cash and maximize profit without compromising the IT requirements of your business.

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