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3 Tips to Reducing Your Tech Costs (Tip 1)

The first step to reducing your technology costs is to understand them. Moreover, it is important to understand the difference and impact of “soft” costs vs. “hard” costs.

Most of you know that hard costs are something you are directly billed for such as software licenses, computers, servers, subscription services, consulting hours, etc.

Soft costs tend to be a little more challenging to quantify and for that reason, can often be overlooked.  Anything from a system or process standpoint that impacts the amount of time it takes someone to accomplish their job should be reviewed.  For example, if you have a team that needs to track their hours every week, but the tool they use to track it takes 10 hours of their time instead of 2 hours, you have lost 8 hours of productivity. Obviously, the loss of those hours directly impacts the amount of work that can be completed in a week. However, since you do not see a bill for those costs, they are considered to be “soft”. This hour-tracking scenario is one simple example.

You may not always be able to reduce soft costs, but it is always something that can affect your bottom line. Use this #simpleitadvice tip to think critically about your organization and the impact of “soft” technology expenses.

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