Many business leaders view their IT budget in a similar way – although they’re aware that IT is necessary in order for their company to function properly, they’re under the impression that it only requires a small portion of the budget to be effective. But the result of this minimal spending on such a crucial part of your business operations is often devastating in several different ways. By only allocating a small portion of your budget to IT as well as cutting costs by foregoing technology upgrades, you’re putting your company at risk for accruing technical debt and potentially falling behind in your industry. Below we’ve pinpointed the ways in which avoiding the cost of IT will actually cost your business more money in the long run:
1.You’ll lose top talent
Employees nowadays are aware of the advantages that current technology offers. Top talent is going to choose a company who utilizes technology to their advantage, and companies who are falling behind with changing technology will be hit by the costs associated with high staff turnover.
2. Your current talent won’t be as productive
When you forgo updating your technology, tasks that could take minutes to accomplish using something like automation will take hours or even days for an employee to complete. This can delay projects and even lead to hiring more staff to complete the job more efficiently, which of course costs the company more money in the long run.
3. Your customers will look elsewhere
No matter your industry, technology plays a huge role in customer service. If you skimp on technology that reinforces your relationship with your customers, they will look for a company that can meet their needs more effectively. You need to be able to show your customers that your company values innovative processes and tools for them to trust that you know what you’re doing, no matter the service you provide.
4. You’ll put your business data at risk
Cutting corners when it comes to cybersecurity and your business data can eventually lead to a data breach, which can cost more than the technology used to prevent it ever would. Not to mention the loss of your employee’s personal data and that of your customers.
5. The IT you DO have won’t work efficiently
If you don’t put the time and money into making sure the IT you have in place is actually doing what it’s supposed to do, you won’t see a return on investment. Downloading the tools and expecting them to work to their full capacity without investing in a comprehensive IT strategy will cost you money in the long run.
Cutting costs on IT may seem like an obvious place to relieve your budget in the short-term, but the issues that can arise will cost you greatly in the long run. These problems can all be avoided with the right budget and a strategy that takes into account your company’s business needs and goals.