22 Jun Maintenance and support costs make up 2/3 of your budget
Yes, you read that correctly. Approximately two thirds of your IT budget and the budgets of other organisations across the globe are spent on Maintenance and Support of the IT application landscape. Maintenance and Support includes more than just the price of your support contracts. It also includes items such as: failed resolution attempts; spares inventory; an in-house support team; internal diagnostics; data collection; training; and productivity losses. Leading research analysts in the IT industry say that even more important to note is the breakdown of these costs, of which only one seventh can be attributed to external IT support providers and the rest are internal costs.
To put this figure into perspective, let’s compare operating your IT estate to a home renovation. Let’s say 85% of a renovation cost would be for demolition and construction – which you choose to take on as a DIY project – the remaining 15% of the costs would go to contracting professionals to complete architectural drawings, approve structures and provide permits.
It stands to reason that you would want to reduce the larger portion of your costs, the 85% portion. In both instances (IT estates and home renovations), the reduction in internal resource cost would increase your need for external support but by partnering wisely with the right service providers, the cost of external support should still be cheaper.
In terms of our home renovation analogy, we could say that you soon realise you would need to buy a fair amount of equipment, hire extra hands and go on various short courses to build what you want to the standard of quality you want it. Realising that you would not use the equipment enough to warrant its purchase and that you are too busy at your day job to complete the courses and project on time, you decide to contract a builder to handle the renovations. By outsourcing the work, you are increasing the cost of hiring an external professional builder, however, the builder already has all the equipment and skills necessary to do the job and therefore can complete the renovations more cost effectively than you could. Likewise, leveraging in house skills to operate your IT estate isn’t always the most cost-effective way to run and sharing the resources of the right external service provider can prove to be more cost-effective and time-efficient.
The reality of the matter is that your IT estate is not a home renovation and finding a service provider who really can help reduce operational cost and deliver service on time at the expected service level is not as easy as finding a trustworthy builder. Regardless of this, in today’s business world, IT is expected to be served on time, to order and with the best user experience possible.
So, if your IT system were a home renovation, we’re there! Building a robust estate and standing next to you on site to ensure that the IT operation you are building is suited to your requirements and budget. We’ll even make sure there’s enough left over to plan for the next improvement.
If you would like to find out more about how Winvest Technology Consultancy Services can reduce your IT support and maintenance costs as well as increase your transformation and growth budget; contact us.
Winvest Technology Consultancy Services, headquartered in India is a leading IT solutions and Services provider. The team with a combined experience of over 30 years, managing complex projects across geographies, you can be assured that your IT landscape is in safe hands.
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