How To Reduce IT Operations Budget

Information Technology (IT) has become a dominant influence on how an organization runs its businesses and relies highly on IT to gain competitive advantage. IT Operations consumes a major piece of the operational budget of organizations of all sizes. As IT becomes more pivotal to day-to-day functioning of organizations, it has also become important that organizations optimize the availability and performance of their IT infrastructure. The IT systems have become more complex, complicated and difficult to manage without shelling out huge dividends. Maintaining an IT infrastructure requires skilled resources and large investment, however the availability to acquire the needed resources at an affordable price has become an ever increasing problem. Organizations of all sizes, face the same challenges when it comes to the upkeep of IT infrastructure components.

As per the marketing researching firm Gartner states, 80% of the dollars companies spend on IT is dedicated to “keeping the lights on” and represents “dead money” which does not contribute directly to business growth. This whitepaper highlights the major contributors on IT Operations spending and the areas where organizations can save considerable amount on IT Operations by adopting IT outsourcing.

IT Operations – Expenditure pattern

Even during the recession, organizations have spent a considerable amount of their budget on IT Operations with restricted spending on acquiring new technologies and assets. The below depicts the spending pattern within IT Operations. This doesn’t include the bandwidth and Operating System license costs.

Data reveals the fact that out of the total IT Operations expenditure, the IT helpdesk contributes the most at 22%. This is due to the high number of skilled staff required to provide end user support on various technologies. Second to Helpdesk comes Infrastructure monitoring which is at 20% due to the requirement of monitoring the availability and utilization of IT systems throughout. The IT tool cost, that consumes 14%, includes the helpdesk tool, infrastructure monitoring tools, end user support tools and the staff cost required to maintain and manage the tools.

Due to the presence of multiple Operating System platforms, the cost to maintain a team to manage Datacenter Operations also stands high. The heterogeneous network environment with switches, routers, firewalls, IPS and proxies escalates the cost to maintain a network. The Network Operations eats 11% of IT Operations budget.

The desktop support and management also consumes a double digit percentage of the IT Operations budget with the cost of staff to do Group Policy Management, Patch Management and software license compliance. The Voice Operations & IT Security takes away 7% and 3% respectively.

Ways to reduce IT Operations budget

In today’s world, to have IT as a true enabler for business and to be on a competitive edge, organizations have to reduce the cost of IT Operations significantly. Outsourcing of IT Operations is one of the best ways to overall reduce the cost and acquire skills at affordable price. When it comes to outsourcing IT, organizations has to take a wise call on what to outsource and what to keep in house. The rest of this whitepaper highlights the areas that organizations should outsource and the different models of outsourcing.

Outsource IT Helpdesk

The responsibility of IT Helpdesk is to log the user complaints, respond and resolve the issues in the stipulated time. This calls for the requirement to have service oriented team who consider themselves us customer service representatives. Many times when IT helpdesk is an internal arm of the organization itself, the customer service mindset gets diluted and the end result would be end users not getting adequate support and importance. Even though there are service agreements between business units and IT, service level agreements are not honored, measured and reviewed consistently. This is an area that should be outsourced considering the need of speedy response and resolution of IT problems.

    Benefits of outsourcing IT Helpdesk

  • Trained staff with service mindset
  • Service Level Agreements
  • Service Reporting
  • Review of Helpdesk performance
  • Availability of skilled resources
  • True client-vendor relationship
  • Low cost
  • Can be extended for 24×7, if required
  • No tool cost and associated hardware cost

Outsource Infrastructure Monitoring

IT infrastructure Monitoring helps an organization to be proactive rather than being reactive to unavailability of IT resources and issues due to degraded performance. If the IT infrastructure is critical to business, necessary steps have to be taken to ensure its availability, reliability and optimum performance. This can be achieved only through the consistent monitoring and maintenance of your IT infrastructure. There are many organizations that had invested in having a network monitoring software to monitor the critical IT elements but couldn’t reap the benefits due to the cost associated to have a dedicated team to monitor and rectify the alerts stops them from doing it. This factor also pulls back many organizations to implement a real time IT infrastructure monitoring system. This is one of the musts to outsource areas in IT Operations.

    Benefits of outsourcing Infrastructure Monitoring

  • 24×7 real time monitoring of IT systems
  • Notification of performance degradation anytime
  • Notification of Service unavailability
  • No cost on tools and hardware
  • No staff to kept in house for monitoring
  • Daily, Weekly, Monthly Reporting
  • Capacity planning reports
  • Vendor coordination by Outsourced vendor
  • Service Level Agreement
  • No alerts missed
  • Routine maintenance of IT systems
  • Real eye on “what is happening”

Outsource Desktop Management

For any organization, desktop and laptop forms the vital part of the IT system. The basic challenge faced today by many organizations is the lack of a standardized operating environment for desktops. Desktop also happen to be the most vulnerable component in any IT infrastructure. Added to this, the ever evolving threat of virus, malware and spyware infection troubles the IT team a lot. Proliferation of unlicensed and unauthorized installation of software and license compliance compounds to the complexity. To comply with various standards and regulatory requirements, the desktop environment has to be safe and secure. That makes desktop management even more cumbersome and challenging. The staff required to manage and maintain a secure desktop environment is quite high due to the high number of workstations compared to any other IT infrastructure devices. Desktop management and support should be offloaded to a service provider who can manage it seamlessly with the right tools and expertise.

    Benefits of outsourcing Desktop Management & Support

  • Timely patch management
  • Ensure the antivirus signatures are updated
  • Stay away from Malwares/Spywares/Virus
  • Speedy resolution of issues
  • Compliance reporting
  • Asset Management
  • Software license management

Service Level Agreement

Outsourcing of end user support like IT Helpdesk, IT infrastructure monitoring & maintenance and Desktop Management & Support can help organizations to offload these staff intensive engagements to a service provider with defined service levels. Many organizations, still hesitate to outsource is due to risk involved in engaging an external service provider and losing the control of IT to the service provider. With Carter Information Solutions’ tailored service models, the above two factors are addressed and organizations can still benefit from outsourcing without compromising on security and IT management control. To know more about the service models, please contact us through the website.

About Carter Information Solutions, Inc.

Since its inception in 2004, CISI has developed and provides innovative solutions for your computing needs. “Outside-the-box” thinking in all facets of IT infrastructure management and support focuses on delivering single-window-service for all IT infrastructure challenges our clients face.

Our goal is to improve our client’s ability to identify, implement and manage a variety of solutions to technology problems and processes. CISI specializes in providing support and services in various information technology verticals within IT Infrastructure Management and support.

From Small to Medium Businesses to Data Center Management, CISI uses 25+ combined years of knowledge and experience in the Information Systems and Technologies field to quickly and effectively find the Innovative Solutions to solve many computing problems and needs.

The Service and support Models have been developed with an objective of providing the best in technology services and operations that integrates people, process and technology, without the high cost. The infrastructure services are delivered by monitoring, managing and resolving IT problems in a secure, time-bound, efficient and cost effective manner.

CISI offers cradle to grave management and support using a variety of maintenance packages for Small to Medium and multilevel business alike.