Why & How to Stop Overspending on Tech Stacks That You Don’t Need
How much companies spend on technology
Even with COVID-19 hitting businesses badly, one thing remained unchanged — investment in technology. In fact, trends showed an upward swing as organizations stayed unfazed by the pandemic.
So resilient were the investors that Statista’s global IT spending forecast showed USD 4.5 trillion on the cards for 2022, rising three percent over the previous year’s spending. And even though 60% of CIOs and IT experts responded to a survey that their tech investment might see a dip, 18% said they expected an increase.
The dilemma of overspending on tech
Poor judgment of consumer needs, hurried decisions and lack of research are some of the reasons that lot of organizations end up spending more than they should. It doesn’t make things easier either when the tools they purchase turn out to be incapable of solving certain future problems.
The bullish trend of overspending on Cloud is a prime example. As businesses go online and migrate all their assets to the Cloud, a good percentage among them fail to do something as simple as modify their tools before the migration, resulting in flagrant wastage of storage and money.
Why & how to stop splurging on tech
While there are several reasons to stop IT overspends, one simple reason is that you might already have sufficient tech capability on board and just need some updates or additional tools. Plus, you need to allocate part of your company funds into other revenue generating business departments too.
As for how to do that — well, the path is not easy, but if you adopt the following practices it’ll be a lot easier for you.
1. Categorize the problems according to urgency
Approach problems plaguing your business by giving priority to the ones that cost you the most. It can be anything, just as long as you address them first.
2. Give preference to valuable processes
Find out which business process holds most value and brings in the biggest revenue so you can strengthen it further by investing on the necessary tools.
3. Find out which is best for you
Software solutions are either customized or readymade. It’s your prerogative and business sense to know whether custom software or off-the-shelf software is what you need, keeping flexibility in mind all the while.
Read the full article on why and how to stop overspending on tech stack and jump into the discussion with your views.
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