Reducing,Expenses,these,days,r business, insurance Reducing IT Expenses
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In these days of recession and layoffs, IT managers are facing some toughdecisions. As my own boss put it recently, "if it's a choice betweenupgrading our Office suite or laying off some people, what do you thinkwe're going to do?"With that in mind, there are a large number of things that an informationtechnology manager can do to lower costs.Postpone upgrading software - I know we are all supposed to bow to theMicrosoft Gods, or at least open our wallets, but there is absolutelynothing in the new Office XP suite that makes it worth upgrading from Office2000 or even Office 97. In fact, if your company is using any version ofOffice it will probably be fine for another year.The same story holds true for everything else. I would recommend lookingvery closely at software upgrades of any kind during the next year or two.As a manager, I personally find postponing some upgrades much more agreeablethan laying off people.Renegotiate software and hardware contracts - Look at your contracts. Anycoming up for renewal in the near future? Call these vendors and discusslowering the rates. If the salesperson does not cooperate, then work yourway up the organization board until you find someone who does cooperate.Negotiate hard - Money is tight, so slow down and let time help younegotiate. When you must purchase something, get bids from lots of companiesand make it known they are in competition. Work them ruthlessly against eachother and you may find rates going down like crazy. Want an example? I hadto purchase an enterprise backup package recently. Prices started in the$300,000 range, yet I took my time and let the vendors work down theirrates. Within 30 days, the offers were all below the $60,000 range! That'squite a savings for just a few phone conversations.Vendors are very hungry these days. For the first time in over a decade it'sa buyers market. Enjoy it while you can and get some revenge on thosevendors who would not lower their prices last year - make them sweat.Postpone hardware purchases - I don't know about you, but the pace ofhardware changes during the past few years has been very difficult tomanage. It seemed like we would just purchase 200 megahertz machines whenthe 400 megahertz models came out. We'd upgrade, then then 600 megahertzmodels were released.I would recommend carefully considering all hardware purchases, especiallyupgrades, for a year or so. Sure, your users may want to upgrade to thenewest 2 gigahertz machines, but I'll bet their 933 megahertz processors areworking just fine.Look closely at what your consultants are doing - If you use consultants,this is a great time to very closely examine what they are doing for you.Honestly look through their project list and question every single item.Discard projects that are not absolutely necessary, postpone what you can,lengthen tasks where you cannot postpone. Consultants are incrediblyexpensive, and often the tasks they perform can be cut back dramatically.Renegotiate consulting contracts - This is an excellent time to discussrates with your consultants. They may not want to lower their rates, but youmost definitely have the upper hand in this economy. I've been able to getcuts of fifty to sixty percent lately just by spending a few minutestalking.The point is simple. Money is tight and will probably get tighter beforethings loosen up. Now is the time to look over everything you do and reducethose costs. Not only will it help keep people employed, but it will impressthe boss and company managers.
Reducing,Expenses,these,days,r