IT maintenance, upgrades and new implementations are necessary expenditures for any business that wants to stay relevant, compliant and competitive. Unfortunately, they can also be very costly and and rife with opportunities for overspending. In today's uncertain market, IT leaders and purchasers often struggle to find a balance between reducing IT costs and keeping the organization's IT systems current and effective. Suspending projects or cutting new investments may save money in the short-term, but it will inevitably hurt the business in the long run.
Fortunately, there is a way to get the technology you need without going over budget. The key is to cut costs before the purchase is even made. You can achieve this by being prepared for negotiations to get the most value for your investment. Here are six considerations to make before your next IT purchase:
1. Explore vendor options
Your current vendor may not always be best choice, especially if you are purchasing new trending technology. Do your research on alternate vendors to get the best deal and gain valuable leverage for negotiations.
2. Don't overbuy
Always think twice about bundled deals--they may end up costing you more than they save. This is because bundles often contain services that you don't need or will never use. It probably makes more sense to skip the bundle and only purchase the items that will actually provide value to your business operations.
3. Gain pricing insight
Determining fair market value on many technologies can be a difficult process, but it is one that is necessary if you want to avoid overspending on your purchases. Consulting with an expert can help you benchmark pricing and find out what you should pay.
4. Reduce support where it is not needed
While support for IT systems and software is necessary, you probably don't need premium level support in every area. Evaluate where you need a lot of support and where you can cut back.
5. Annual maintenance increases are not mandatory
Vendors will often try to increase maintenance fees every year and tell you it is standard practice. If you agree to these annual increases, you are overpaying for service.
6. Plan for the future
Today's IT purchases should not only fulfill current needs, but they should also be aligned with your future objectives. Make sure to think about the next 18 months before you settle on any one solution or vendor.
Fortunately, there is a way to get the technology you need without going over budget. The key is to cut costs before the purchase is even made. You can achieve this by being prepared for negotiations to get the most value for your investment. Here are six considerations to make before your next IT purchase:
1. Explore vendor options
Your current vendor may not always be best choice, especially if you are purchasing new trending technology. Do your research on alternate vendors to get the best deal and gain valuable leverage for negotiations.
2. Don't overbuy
Always think twice about bundled deals--they may end up costing you more than they save. This is because bundles often contain services that you don't need or will never use. It probably makes more sense to skip the bundle and only purchase the items that will actually provide value to your business operations.
3. Gain pricing insight
Determining fair market value on many technologies can be a difficult process, but it is one that is necessary if you want to avoid overspending on your purchases. Consulting with an expert can help you benchmark pricing and find out what you should pay.
4. Reduce support where it is not needed
While support for IT systems and software is necessary, you probably don't need premium level support in every area. Evaluate where you need a lot of support and where you can cut back.
5. Annual maintenance increases are not mandatory
Vendors will often try to increase maintenance fees every year and tell you it is standard practice. If you agree to these annual increases, you are overpaying for service.
6. Plan for the future
Today's IT purchases should not only fulfill current needs, but they should also be aligned with your future objectives. Make sure to think about the next 18 months before you settle on any one solution or vendor.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT expense reduction solution service
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