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The best way to demonstrate this is with a real example of what we have achieved elsewhere. |
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These are the before and after figures of a medium sized manufacturing company in this area. |
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| Area |
Annual Costs before |
One off costs |
Annual Costs after |
|
| Networking and email costs |
£12,300 |
£2,600 |
£1,000 |
|
| Anti Virus Protection |
£3,600 |
|
£1,200 |
|
| Logistics and Finance package |
£37,600 |
£10,000 |
£13,000 |
|
| Disaster recovery |
£3,200 |
|
£0 |
Included in support service |
| Server consolidation |
|
£11,500 |
|
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| Landline telecoms |
£28,000 |
|
£17,000 |
|
| External Mobile telecoms |
£28,000 |
|
£14,500 |
|
| Telephone switch |
£5,500 |
|
£4,000 |
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| Internal cordless phones |
£14,100 |
|
£5,400 |
|
| Outsourced Support services |
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£11,800 |
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| 3rd party ad-hoc support |
£2,100 |
|
£30,000 |
Repairs, software development, etc. |
| IT Staff |
£138,000 |
|
£12,000 |
3 fulltime reduced to 1 part time |
| Totals |
£272,400§ |
£24,100 |
£109900 |
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Ħħ1.5% of revenue. |
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How we achieved these savings. |
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Conventional methods were used to analyse I.T. expenditure, aggressively negotiate lower prices with suppliers and take out unnecessary cost. |
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However, the real difference we were able to provide was to change perceptions about what I.T. provided and how it was used. As a result, we reduced the amount of I.T. hardware, software and services required with their associated cost savings. |
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We also broke out of the "latest and greatest" circle of IT buying and targeted spend at where the business needed it most and at the correct level to suit those business needs. |
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If you would like to discuss whether your business could benefit from similar I.T. cost savings please feel free to ring me on 01733 212137 or email cjohnson@c-itoi.co.uk. |
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Notes |
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These savings were implemented over a period of 3 years |
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The company is in the manufacturing sector with c180 employees |
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The percentage savings are not necessarily scaleable to smaller organisations. However, in these organisations the percentage of revenue spent on IT tends to be higher so the effect on profits can still be significant. |
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During this time the number of end-user p.c.s reduced from 123 to 102. 16 older p.c.s were replaced with new machines. The costs of acquisition and the savings in maintenance and user productivity associated with these are not included above. |
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During this time the number of printers was reduced from 34 to 21 by installing shared, networked printers. The costs of acquisition and savings in maintenance and consumables associated with these are not included above. |
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