Discover 7 best practices for reducing IT costs

Reducing IT costs is one of the main challenges facing industry managers. It is not easy to reduce spending on technology infrastructure and, at the same time, continue to invest in advances that will maximize the generation of business value.

In practice, cutting IT expenses should never involve the precariousness of the services provided and the quality of the equipment. With advances in digital technologies, disruptive innovations and effective management techniques, it is possible to minimize intelligence spending.


In this article, we have selected 7 best practices that can reduce information technology costs in a company. Meet them all!


1. Take your servers to the cloud

This is a virtually infallible tip: by migrating to cloud computing, the company reduces expenses with physical servers, energy, maintenance and security of these equipment. And this not only saves space but also allows for smarter use of this type of resource.

In the PaaS model, or platform-as-a-service, the company pays only for the services it uses in the cloud and thus manages to control its budget intelligently and effectively. Whenever more infrastructure demands arise, instead of having to invest in new equipment, just change the contracted plan.


This scalability allows infrastructure costs to be proportional to what is actually used and will always result in a significant cut of IT expenses. In addition, the cloud is more secure, practical and reliable.


2. Implement the agile method for software development

Agile method frameworks , such as Scrum and XP Programming, are already proven by the market. Companies that take this approach are able to develop products more quickly. In addition, they have lean teams that deliver more value than was achieved by traditional project management methodologies.

With the agile method, working software is prioritized and the development process is done in incremental iterations and continuous deliveries that allow greater alignment between IT and the business side. This culminates in useful products that better meet the needs of the business.


However, to adhere to the agile method, professional maturity is required, both on the part of the IT team, managers and the company itself. And that leads to the next item.


3. Invest in team training and development

Qualifying teams is one of the best investments for the IT budget. Prepared professionals can think of impact actions and generate better results.

On the other hand, more technical training in languages ​​and good IT practices can help in professional development and enhance the capacity of each person on the team.

In addition, employees who undergo training paid for by the company feel more valued and motivated to work.


Contrary to what some outsiders believe, IT work is much more creative and intellectual than manual. With a well-prepared team that masters the most modern development and maintenance techniques, problems and challenges are approached differently and can be solved in a fraction of the time it would take for an untrained team.


4. Update systems and equipment frequently

The development of technology is not linear, but exponential. Moore’s prophetic law, verified by Gordon Moore, one of the founders of Intel, considers that the power of a processor, at least, doubles every 18 months, maintaining the same implementation cost.

The rule applies to other types of technology, and that means that a computer or system from 18 months ago generates half the results that something current can provide. After 36 months, it is only a quarter of the potential of a current solution.


Therefore, it is important to establish a schedule for updating both the hardware and software used in a company. Over time, obsolete solutions mean lost opportunities to create value.


5. Automate repetitive and routine tasks

It is a waste to use the technical potential of employees specialized in IT to perform simple and repetitive tasks, which require more sweat than intelligence to solve. In addition, work processes often demand the control of an immense flow of information, such as spreadsheets, documentation and emails, which disorganized more hinder than help in the execution of a project.


One way to save money on this is by automating these responsibilities with technologies such as chatbots for technical support and even simple scripts for executing routine processes in the industry. And to improve trust and control of information in processes, it may be interesting to invest in workflow solutions  capable of standardizing simple and complex processes. The more automated, the more effective a company’s IT is.


6. Review the company’s software licenses

One type of simple expense that can snowball a company is software licenses, both for life and distributed as a service and with monthly payments.

It is important to have an organized method of managing these licenses to know when they are in use and if they are still needed. Sometimes, operational and even team changes can make some software licenses meaningless, while others can be transferred internally.

In addition, it is also important to organize licenses well to avoid waste with unnecessary acquisitions.


7. Align business and technology with IT governance

Adopting IT governance can mean considerable expense reduction in the industry. One of the main reasons for wasted resources in the technology sector is the misunderstanding between the IT team and the business side of a company.

Without a well-structured relationship, it can happen that the IT team develops products and services that are not aligned with the company’s business strategy. Often, the company’s operations and management do not know how to express their real demands to the technology team.


With IT governance, the relationship between technology experts and the rest of the company is structured with a common language and tools that allow both sides to better understand each other.


The tip is to study the main frameworks, such as ITIL and COBIT, which suggest good effective IT governance practices. And it is important to note that investment in governance involves not only the technology team, but also the contact points of other sectors and the management of the business.

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