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The Hidden Costs of Bargain IT



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Organizations across the nation are continuously looking for ways to cut operating costs, which at a high-level view, is the fiscally responsible thing to do. It’s a quick way to boost your bottom line and impact profitability.  Who doesn’t love running a tight, finely-tuned ship?

Sadly, the “do more with less” mindset can cost more in the long run. The stress to cut costs, especially in IT, can cause management to make unwise decisions that can be far more costly in not only lost dollars, but also in lost business.

Cost Cutting Mistake #1: The accidental IT manager

Smaller businesses tend to shy away from outsourcing their IT Support and Management services because they are small. They simply cannot afford to employ a full-time IT manager, or wouldn’t have enough work for them to justify a full time job. It seems to make sense to refer to Ned, the office manager who can always set up printers or troubleshoot small problems when things go wrong. But in the grand scheme of things, there are thousands of dollars a year lost in productivity annually, and accidental IT managers lose an average of six hours a week to performing technical tasks. These losses are not including what were to happen if there was a security breach and company information is compromised. Yikes!

Cost Cutting Mistake #2: Reduce quality of outsourcing, lose it to increased communications

Outsourcing to companies without an outstanding reputation is a gamble. Companies that you haven’t worked with before and carefully vetted can result in communications issues and time lost, which means more money spent. Many times, when beginning a new IT project, it is very easy to underestimate the complexities of the entire scope. Finding an IT partner who is experienced and reputable is critical to the technological health of an organization.

Cost Cutting Mistake #3: Going the Ebay route

When it comes time to replacing hardware, it’s not recommended to treat it like a household good, where used or refurbished may be acceptable. Quality re-sellers do exist, but so do junk traders. You very well may end up purchasing systems loaded with 3rd party or damaged components, which brings us back to basics: do business with an IT partner with an outstanding reputation.

Cost Cutting Mistake #4: Freebies

When implementing change with a budget in mind, what can be better than free? There are many free software programs available that claim to solve all your business operational problems. Downloading unauthorized, unsecured software can cost businesses more in security risk than the cost of their alternatives.

Cost Cutting Mistake #5: BYOD

Having employees use their own devices can seem like a cost-cutting no-brainer. The problem is, most individuals believe it is their company’s responsibility to protect data, which ultimately is true. The cost of maintaining data and device security often are equal or even outweigh the savings of BYOD.

LBMC Technology Solutions has certified experts to help you avoid these mistakes. Contact us to help you determine the best solution for your company.