Have you taken a look at the way the IT department handles your processes, and what equipment is in place? Our goal is always to standardize your IT, but in order to do that, a financial commitment is needed. For example: do you have a PC refresh program where after 3 years, all the PC’s are replaced? Sounds expensive right? Let’s break it down. Let’s say you have 50 PC’s. You replace them all at $500 per PC. Your cost will be $25,000. With the staff having all new PC’s, the IT department can focus on more important cost saving projects, and most likely, use one less lower level staff member. Let’s put that savings at a mere $10,000 per year. Now your PC’s just paid for themselves. Let’s continue. With newer PC’s there is less downtime. Let’s estimate an average of all 50 PC’s being down for one hour each over 3 years. We can modestly average $10.00 per hour per employee. That’s another $5000 to add to the savings of purchasing the new PC’s. Our next tangible is efficiency. People can work faster and better. Let’s average this that you will gain approximately $5.00 per person in efficiency. That gives you another $2500.00. And lastly, the work the IT department does for you in discovering and testing new technology because they are not caught up in day to day PC support. Let’s put a price tag on that of $20.000.
Let’s add it up
Cost – $25,000
Gains – $10,000 + $5,000 + $2500.00 + $20,000 = $37,500 x 3 years = $112,500 less the original investment of $25,000 your saving over 3 years = $87,500
Not bad! We need to keep in mind that IT is not a revenue generator, however if you standardize your IT and have the proper processes in place, it doesn’t have to be as expensive. You can gain income by having an efficient IT program with standardize refreshing, new solutions, and constant product testing. Give your IT department the time to keep up with new technology instead of supporting old PC’s and old servers. You would be surprised at how much more valuable they can become.
Sheryl Cherico, CEO