Ways to Reduce Wasted IT Spending for Companies

A technological world is being formed with lives that are digitized day by day. In these years when digital transformation is inevitable, new technologies emerge. One of these technologies is Information Technology (IT). IT which is an important part of digital transformation plays a critical role in increasing the business efficiency of organizations. However, while companies increase business efficiency, they use destructive technologies and cause IT expenditures. A large part of these expenditures is due to digital transformation. Fortunately, it is possible to prevent these destructive effects of digital transformation.

Let's examine together the ways to prevent waste by reducing the IT expenses of companies.

What Is IT (Information Technology)?

IT is the process for maintaining the lifecycles of data such as the creation, storage, and processing of any electronic asset. IT secures data by accessing all kinds of information about an organization's assets and positively affects the business process. The IT department ensures that the company's system, data, network, and application work together and in harmony. IT technology provides tools to process, analyze, store and secure data. In line with all this information, companies incur a cost for IT.

Many organizations do not pay due attention to their IT spending and they waste money instead of spending money efficiently. Moreover, these companies invest in the negative aspects of technology while increasing business outcomes, resulting in increased IT spending. Worldwide IT spending is expected to grow 4% to $3,8 trillion in 2021 according to the latest forecast by Gartner. Although the digital transformation strategy includes a large part of these expenditures, waste in IT spending should be avoided.

There are some solutions to reduce waste in IT spending.

How Companies Can Reduce Wasted IT Spend?

IT spend reduction is the process of identifying sources of low business value or inadequate applications within the IT budget. There are some strategies to avoid this waste and save on IT cost.

• Cloud Cost: Manage your cloud costs in one platform. Possible to reduce waste by optimizing cloud spending while increasing functionality by managing cloud costs. In this way, it is easier to budget without encountering any surprises during invoicing.
• Applications: Measuring the value of existing applications in companies affects cost. Identifying valuable and inadequate applications and creating an investment strategy accordingly reduces waste in IT spending.
• Spending Control: The company should track and control expenditures regularly. The cost difference in areas such as software or hardware of IT spend is determined. Thus, waste on IT spending can be reduced.
• IT Services and Pricing: Pricing and billing are under control with the correct consumption of IT services and resources.
• Economize: Company should have the capacity in line with their needs in related fields. Savings can be achieved by spending in line with business needs. Therefore, identifying business needs and dominance is important.
• Infrastructure: Controlling infrastructure costs such as network, storage, and data center positively impacts IT spending.

IT Asset Management for Eliminating Wasted IT Costs

The increase of assets and services for which IT departments are responsible has made IT processes in companies more complex. An uncontrollable IT infrastructure brings about too many risks. For this reason, IT Asset Management is becoming more important day by day. IT Asset Management is a methodology that covers business processes for monitoring and measuring all IT assets owned by the company. Software, hardware, and integrations are the responsibility of IT Asset Management. Therefore, companies that implement a successful IT Asset Management process can identify redundant IT assets and optimize their IT budgets.

IT Asset Management Software

IT asset management software is the name given to digital solutions that enable the monitoring, evaluation and management of complex IT structures and technology stacks. ITAM software helps businesses manage their IT inventory effectively, freeing them from the dysfunction of spreadsheets.

• Application Portfolio Management Tool
• Hardware Asset Management Tool
• Integration Inventory Management Tool
• IT Cost Management Tool