Cheaper is not less expensive in IT. First, let’s define IT costs. They include the hard costs of equipment, connectivity, software, vendors, direct IT employees. There are soft costs of capital, employee productivity risk, functionality, opportunity costs and peace of mind.
Solving IT pain, getting your business from where it is to where you need it to be has a cost as well. Look at the results you get from IT today.
We all want the best return on our investments. Everything has a relative value. We encourage you first to define the difference between money and value. Businesses cannot control technology costs by spending less with a vendor. Put money in perspective. A great way to test this is to ask yourself, “What if the reality is I can’t solve these problems without spending 1) a dollar more, or 2) twice as much?” The ROI is in the end result.
If you have two potential IT solution providers to choose from, the costs can be very different. If one is more expensive, you may think of it as a premium offering – the old I need a Ford, not a Cadillac analogy. The real question to answer is, “Will investing a little more get better results?” The real analogy is an air conditioner. Let’s say you own a building, and you need to replace the air conditioner. One vendor is $5k the other $10k. You are thinking, “I don’t want a premium, I just want an air conditioner.” Cheaper will likely cost you more in maintenance over the 15 years you own it. It will cool your building until you get to about 86 degrees, then you will get a little sweaty. For $10k, your total cost of ownership will be less and you will be cool. Get the air conditioner sized right. Undersized you will sweat. Get the right offer at the right price.
Whether you deliver IT in-house or by an outsourced solution provider, ask yourself, “How noisy is IT?” When pain and noise go away, value is there.
It takes a village and ingredients to get the result. Ask yourself if you can separate costs and results. Why would you spend more? What happens if you don’t? Put the cost in context to the other costs in your business.
If you would like more information about how you can take control over your IT spending and improve the ROI of your IT budget, check out our business IT solutions page by clicking the button below.
Who we are
masterIT serves mid-south organizations with 20-500 employees. We help them leverage technology to be their market leaders.
If you're ready for a better IT outcome, contact us to start a conversation.