Get in Touch


Can Improved IT Services Reduce Company Overhead?

July 26, 2023
Reading Time: 4 mins
Author: Ray Sweeney

Perhaps the most significant challenge for SMBs this year is finding skilled and experienced staff to fill vacancies. Inevitably however, finding the right people is only the beginning of the challenge.

Hiring people in 2023 ultimately leads to increased employment costs. Coupled with other increasing costs of business and pressure to keep pricing down; the only remaining lever businesses have to maintain profitability is to reduce overhead.

Are you a business owner, executive, or manager in charge of cutting overhead costs? If so, then leveraging improved IT services might be the key to reducing your company's overhead.

IT can be a significant drain on an SMBs budget, and not for the reasons most people think. While SMBs may think they are saving money by cutting corners on IT, this may be doing more harm than good. By aligning technology to your business goals, you can significantly reduce company overhead and positively impact your profitability.


The Hidden Cost of Saving Money

There are some eye-opening findings from a multitude of studies on technology in the workplace. A study commissioned by Microsoft surveying 2,156 SMBs in the Asia Pacific region found that the cost of keeping a PC >4 years was $4,065 per device. 82% of this cost was lost productivity.

Another study found strong correlations that indicate that older PCs are costing small businesses a significant loss in productivity, along with increased risks of security breaches.

The data included the following statistics of PC age and the recorded loss of productivity:

Productivity Loss by PC Age

This data however is merely the tip of the iceberg. Whilst startling, the above figures are only factoring in the effect of old, slower PCs. When you consider other factors such as configuration, infrastructure speeds, and reliability, the costs get even higher.


Overview of Mature IT Services and its Benefits to Companies

Our data observed between comparing new clients with those that have been correctly aligned to standards indicate an average productivity gain equivalent to ~$740 per user, every month.

Furthermore, it's been reported that SMBs with mature IT capabilities are twice as likely to achieve 30% or more workplace productivity gains. When a workforce has the right tools & resources, productivity and innovation increase. This results in not only better returns but also the ability to attract and retain top talent.

By leveraging improved IT services, companies can improve productivity, reduce operational costs, enhance customer experiences, and gain valuable insights into their operations.

For instance, with data analytics, companies can make more informed business decisions. With cloud solutions, companies can access data and applications from anywhere. By implementing modern business automation tools, companies can streamline workflows and reduce manual tasks.


Understanding ROI when Outsourcing IT Services

For smaller businesses, outsourcing IT services in Melbourne is often the only viable option when it comes to supporting IT in the business. A choice comes however in the form of high vs. low-priced outsourced IT services. Whilst cheaper outsourcing may appear cost-effective it's important to note the hidden costs of many outsourcing arrangements.

It's important to understand value from IT spend. The average 30-user business loses 90-120 hours of productivity a month from ‘minor issues’. This loss can be cut by as much as 80% with a more proactive approach. Selecting the right vendor is critical to your overall success.

Whist low-priced managed IT services may appear cost-effective on paper, investing in improved IT services commonly produces significantly higher ROI.


The Importance of Good IT Advisory

Having a technology partner that provides informed advice and direction can have an enormous impact on an SMB.

On one hand, informed advice can commonly save an SMB 20-30% on infrastructure and subscription services. On the other, innovative ideas & new technology adoption can provide significant improvements to employee engagement, client satisfaction and profitability.

Reducing IT expenditure can take on several forms. For the most part, effective planning and consideration of future needs can negate costly errors and course corrections. There is also an immense upside when non-IT professionals can adequately evaluate technology investments for their commercial impact rather than the technical specifications.

As businesses grow, so do the complexities of tasks. Automation is the new shiny toy. Even small companies are now beginning to leverage artificial intelligence to automate tasks such as data entry, customer support and marketing.

In addition to improving efficiency, automation can also lead to increased accuracy, cost savings and better decision-making. Navigating these new technologies doesn't need to be complicated or scary with the right IT managed services partner.



In conclusion, companies that use mature IT practices can maximise their ROI when it comes to technology.

There may be no single solution that will work for every business but understanding the benefits of incorporating various elements of IT services can help save companies time and money.

Armed with the right information, businesses can start finding ways to implement modern solutions to cut overhead expenses and create a high success rate in their operations.

Want to talk?, you can book a chat directly with us at a time that suits you to learn more.


Discover How We Can Accelerate Your Business Growth