IT investments aimed at fueling growth and efficiency can instead quickly swamp budgets if not properly managed. Soaring software costs, incomplete projects, inadequate security, and operational inefficiencies drain organizational resources, hindering broader strategic objectives. But with smarter oversight of technology spending and resources tied closely to business objectives, companies can maximize returns while avoiding budgetary sinkholes.
Continually Reconcile Software to Usage
Failing to adequately track software usage against license agreements propels unnecessary overspending. According to the people at Opkalla, Microsoft license management in particular, demands vigilant oversight given the complexity of user-based versus device-based licensing models and the various subscription tiers available. When true-up cycles hit, avoidable fees result, especially with Microsoft’s comprehensive licensing agreements that can quickly multiply costs across the enterprise. Careful coordination with HR alongside automated device scanning helps ensure license compliance.
Look Before Renewal Notices
The mad scramble to evaluate renewals only when vendor notices hit leads to reflexively accepting whatever terms got negotiated perhaps years ago without reconsidering current needs. Instead, have process triggers forcing fresh evaluation of subscriptions and maintenance agreements against recent usage data as renewal milestones approach. This oversight ensures correct licensing and service levels while uncovering obsolete products whose phase out yields savings.
Tie Investments Directly to Goals
Both over-spending and under-investing carry repercussions if IT outlays lack clear traceability to strategic targets. Granular tracking of how infrastructure and software match objectives around efficiency, analytics, customer experience and other key results areas makes cost/benefit visibility unambiguous. If resources yield mediocre results, it’s easy to decide whether to redistribute or cut them. Purposeful allocation also identifies where more technology spending could exponentially affect top-level goals for selective infusion.
Standardize and Consolidate
Supporting a disparate array of tools, vendors and platforms invites fragmented oversight that obscures resource waste and integration issues. Looking to minimize unnecessary diversity through standards around common capabilities simplifies licensing while easing controls. Likewise, migrating to consolidated systems and suites enhances uniformity. For example, pushing to unified communications platforms encompassing telephony through video conferencing replaces piecemeal solutions.
Scrutinize the Procurement Process
Faulty purchasing channels invite deal-happy vendors to oversell while creating loopholes for unwarranted purchases. IT acquisitions should undergo centralized oversight, including procurement and finance stakeholders, beyond just requesting technical teams. Establish controls requiring robust product evaluation, competitive bidding, and defined review procedures on large outlays before final approvals. Continual vetting of buying channels minimizes leakage from needless or inflated spending.
Instill Accountabilities Upfront
Major rollout faltering from unclear responsibilities further strains budgets through delays and wasted efforts. Who looks after the project? Who supports which components? Who signs off milestones? Questions carry grave financial implications if unanswered. Clearly define roles and responsibilities from the outset using a RACI matrix, covering everyone from executive sponsors to those conducting functional testing.
Allow Time for Training
Inadequate training breeds fear of new solutions and reliance on status quo systems despite hefty replacement investments. Users cling to outdated tools lacking promised efficiencies simply because no one showed them better ways. Build ramp up time into project plans and measure adoption rates. Sponsor things like homegrown training videos and peer-led walkthroughs. Set thresholds like 80% proficiency across targeted user groups before decommissioning legacy platforms. Skilling protects ROIs.
Conclusion
The common thread across neglected areas manifesting as runaway IT costs is lack of full-lifecycle oversight. What may appear as prudent savings or harmless renewals turns punitive when disconnected from usage and outcomes. Only continual re-evaluation of technology against business priorities stemmed into processes uncovers these budgetary pitfalls before they become sinkholes. With comprehensive governance, IT instead propels growth through smart, measured and accountable investments tailored perpetually to needs.
