It’s a new year. One goal we all have year in and year out is to reduce expenses. The good news is there is a way to do that that is often overlooked. Baselining your IT spend and contracts is an important step in creating a savings program. By understanding your current spending and contractual obligations, you can identify areas for potential savings and develop strategies to reduce costs without sacrificing the quality of your IT services.
First, gather all of your IT contracts and invoices for the past year or two. This will give you a good overview of your current spending and will allow you to see any trends or patterns. Pay particular attention to contracts that are coming up for renewal and those that may be eligible for renegotiation.
Next, review your contracts to see if there are any opportunities for savings. For example, are you paying for services that you no longer need or use? Are there any bulk discounts or other discounts that you could take advantage of? Are there any clauses in your contracts that could be renegotiated to save money?
Once you have identified potential areas for savings, it’s time to start developing your savings program. This should include a plan for renegotiating your contracts, as well as strategies for reducing your overall IT spend. For example, you may want to consider moving to a cloud-based IT infrastructure, which can often be more cost-effective than maintaining on-premises servers. You may also want to look at reducing your overall IT staff, either by automating tasks or by outsourcing certain functions.
Finally, make sure to regularly review your IT spend and contracts to ensure that you are on track to meet your savings goals. This will help you to identify any potential issues before they become problems and will allow you to make any necessary adjustments to your savings program.
In conclusion, baselining your IT spend and contracts is a common method of reducing costs and saving much needed capital. However, many times it isn’t as simple as it sounds. Yes, it’s a simple process on paper, but it takes time and dedication to execute effectively. Additionally, a regular review and adjustment of your savings program will help to ensure that it remains effective over time. Here is where CWE can help. We offer two value assessment options to meet you at your immediate pain point and budget. We can assist in insuring you have visibility of your technology investments in one view. We can also help with auto renewal monitoring by making sure you have the knowledge you need well in advance to make informed decisions. When partnering with CWE the possibilities are endless when it comes to managing the cost and complexities of IT.
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