September 29 2011

Wasting Money On Technology

Posted on the 08:00 am under Business,IT Careers,Microsoft by Darren Boyer

IT expenses in an organizations budget can sometimes float to two extremes.  At times it can be reduced to the point where operations can no longer be efficient.  Other times it can be an overbloated expense that borders on the outrageous.  Because the costs related to technology are constantly changing and the delivery of support and equipment costs are also  evolving gauging reasonable costs can be like looking through murky waters.   In this article we hope to give our experience that may serve as some rough guidelines.  These may be a little controversial but let’s hope it is in a constructive way.

You may have a bloated IT budget if:

1) You have 1 full time staff and less than 100 desktops.

More bloated yet would be 2 full time staff for less than 100.  The worst we have seen is 3 full time staff, plus outside contractor support for less than 100 pc’s.  This was in the Grande Prairie region and they were still getting significant downtime!  Typically, but not always, full time IT support is not that good in an environment with less than 250 PC’s so having full time staff is not a way to save money but an unnecessary expense.

2) Your technology related capital expenditures exceed 40% of technology related operating expenditures for two or more consecutive years. 

This either means the business has had to realign its Information Systems two or more times to stay competitive or somebody has spent too much money playing around or buying toys.  In either case, having someone who understands how to match the right technology to a business should help keep new technology purchases to only those that have the highest payback.  Working with someone who knows current IT project costs should also prevent money like this being wasted in the future.

3) Manual inventories and manual documentation is being performed to manage inventory and licensing. 

The cost to performing a manual inventory or collect license information manually is not a big expense.  However, this should be a red flag that the party doing the inventory is significantly behind the times.  If they are behind in technology skills to perform an inventory there is likely optimization and configuration skills that are also out of date.  Someone is paying extra when skills are behind.

4) Onsite visits account for more than 20% of issue resolution.

Travel costs time and time costs money.  Having someone travel to a desk whether across the hall or across town can be a very inefficient method of delivering results.  If paying for onsite support seems to be a good option there are likely competitors who are doing things better, faster and cheaper via remote support tools.


Written by Darren Boyer

Darren Boyer

Darren Boyer is the founder and president of pcit.

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