You may think you’re saving a few bucks by keeping your technology needs on hold, but it could be costing your business in other ways. According to Forbes, people with outdated technology spend more time navigating administrative tasks than value-added engagement with customers. Customers also expect you to interact with the latest technology and your company can be judged poorly without it.
However, that doesn’t mean you can’t work out a cost-effective way to invest in your company’s technology without breaking the bank. Here are five ways to cut costs while staying focused on improving your company’s technology.
Invest in cloud-based services
Investing in cloud-based services from the start can reduce your costs and improve your technology at the same time. Look for software that requires no upfront investment on areas like hardware or software or any other forms of CapEx. For example, a cloud contact call center offers the tools you need on demand without the burden of continuously updating and maintaining massive amounts of infrastructure. This type of model can also help you stay competitive in your market whether you’re offering inbound calling or live chat options.
Ditch the office
Your office space can unnecessarily eat up the bulk of your operating costs. According to data collected from The Square Foot, the average monthly rent for a square foot of office space in Atlanta is $1.74, but jumps to $6.16 in New York City.
Aside from carefully choosing your office space location, you can ditch the office altogether and work remotely with project management and conferencing tools. For example, Slack can launch video calls right from the same platform you manage your projects with team interaction. A service like ShareDesk can also connect you with conference rooms and co-op workspace when you need it. One of the added bonuses is finding office space for rent with the high-end technology you need instead of investing in it on your own.
Pay as you go
You might score a better deal if you pay for services upfront, but it can also kill your cash flow and lock you into long contracts. Look for services that offer monthly pay-as-you-go options to keep more money in your business bank account.
Mozy offers small and enterprise-grade backup solutions for your computers and devices with military grade encryption. You can choose their monthly plan and get the added benefit of using a service with cutting edge technology that keeps your data safe and hackers at bay.
Outsource your IT department
An in-house tech team may offer more flexibility for your needs, but outsourcing the entire department can reduce payroll costs while keeping your technology up to date. You could also use the savings of outsourcing your IT needs and apply it to updated technology and equipment in your office, Quickbooks suggests.
Strategically shop around
Staying with a vendor out of loyalty or habit could be costing you more money than you think. Take a look at the services you need from recruitment to consulting and start shopping around to compare prices. You might find a better deal with an emerging company looking for more clients. But you can also brainstorm ways to ask for a bigger discount. Some vendors will offer a discount if you pay your invoices early. You could also consider extending the terms of invoice payments from 60 to 90 days to keep more cash flow coming into your business.
However you decide to cut costs, make sure it’s not at the expense of the technology you need to stay competitive. Work toward a balance of savings and improved technology in tandem to get the results you want.