Working out exactly how much to spend on IT is difficult for a business and it really depends on the size of the company.
For example, a ROI consultancy Ailean Inc. did a comparison on the amount spent on IT and the size of the company. Small companies, defined as those with revenue less than $50 million, on average spent 6.9% of revenue on IT with medium sized spending 4.1% and large 3.2%. Interestingly companies that invested the most into IT software and hardware were not actually the best performers which is surprising given the fact that IT is meant to make companies far more efficient and effective. It is very important for companies to be effective in their IT investments as it turns out these companies are the most successful, with the top performers having a very conservative approach to IT spending.
Spiceworks also conducted a survey in Texas where they found that the average IT spend per employee was $2,770 for small businesses which is very high when compared to $698 for large companies. For me personally this seems like far too much and Setyl can definitely help to limit these unnecessary software and hardware costs because without us you are going to continue to pour precious money down the drain which could be far more effective elsewhere.
One of the questions that many people like to ask is where the money goes when spending it on IT. This is highlighted in The Computer Economics IT Spending and Staffing Benchmarks study conducted in 2019/2020 which highlights that 80% of the increase in IT spending went towards cloud applications and 61% to cloud infrastructure. At Setyl we can help you to manage this increase in spending so that your business can be successful without overspending on IT, especially in relation to the Cloud.
Benefits of technology in business include the use of customer demand in order to better guide the entire business, beating competitors through making your business progressive and forward-thinking by utilising technology as well as simply reducing costs, maximising profit and minimising waste.
Obviously, as highlighted above, there are lots of benefits of technology in the business world but almost every business owner needs to decide how to allocate these funds effectively. Through the successful, thought out investment into IT, companies will be able to tap into more potential consumers and build better relationships with existing consumers as well as provide a better service, but it needs to be done in a cost-effective manner.
Ultimately, business owners need to view technology as a cost of doing business but also an opportunity to do more business. At Setyl we can help you manage your IT costs in order to make your business successful.
