Industry News from Cloud IT

Cloud Can Help Cut IT Costs While Improving Value of IT Workers

August 05, 2016

The practice of cutting costs while increasing revenues, productivity and efficiencies is standard operating procedure for businesses of all types and sizes. The IT department is rapidly taking the main stage for many organizations, so it subsequently becomes a convenient target for cost cutting.


Cutting IT costs can be a tricky undertaking, however, since businesses typically want to stay on top of technology trends and maintain or increase staff productivity and efficiency. And IT labor costs are on the rise, according to the U.S. Department of Labor, which cited compensation expenses for IT as up by 1.9 percent for the year ending this past March. Yet most IT budgets increase just two percent per year, leaving many businesses stumped about how to get ahead of the game while cutting costs.

One of the ways companies can keep staff motivated while encouraging them to be more productive is by teaching new skills, tools and positions. When workers are challenged they are more likely to keep their current jobs, particularly if they are learning new skills that add to their value in the workforce.

IT staff can only be stretched and reworked to a certain point, and then organizations will need to look at other ways to cut IT costs. Technology is a major factor here, as many processes may be automated, enabling IT staff to focus on other projects. Cloud services can play a major role here, handling some of the heavy lifting for routine processes and freeing up staff and company resources for more important projects.

Cloud-based self-service is another important option, handling routine tech support requests from staff so help desks may focus on more complex issues.

The push toward cloud services and solutions will also impact IT staff and hiring practices, as cloud skills are clearly in demand. Organizations need staff with cloud service experience and IT personnel are interested in learning cloud skills to remain competitive in the workforce. The result is a win-win for businesses and IT staff, as the cloud is becoming an entrenched part of IT departments.

Cutting IT costs can be a challenge for any company, but by factoring in the prominence of the cloud and its changing role in IT, businesses can help streamline their budgets while ensuring their IT staffs are proficient in cloud services and applications.




Edited by Alicia Young

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