Warning: The True Cost of Poor Technology


You Spend Too Much Money

Executives struggle to see the true costs and inefficiencies of poor technology. Who can blame them? Technology has gotten really complicated. Caution! The outcome of not looking deeper is a lot of money.

Case in Point
MotherG has been courting a potential new client recently. We just concluded the fourth meeting over the last 5 months. The client is a prestigious Financial Services firm with 30 computer users in 2 offices. They have been in business for over 20 years and have enjoyed steady growth.

They are entrenched in a reactive, Break/Fix mode for IT support and have been for many years. My hunch…the management of the firm think that they are saving money on IT costs, when in fact it is costing them more – a lot more!

When they have an outage, they reactively purchase a “band-aid “solution to resolve the issue and move on to business as usual. Over time, these solutions have created many levels of complexity for both the in-house computer guy and external IT consultants. We found many point solutions with varying costs that were cobbled together. On the surface, it seems to work, so the executives feel OK. Kind of like having 5 arteries clogged, but you are still feeling above ground, working. Imminent disaster might be only a heartbeat away.

Costs Going Up
They purchase a “block of hours” for external IT support to supplement in house resources. The added technology complexity coupled with the band-aid fix solutions ends up consuming more of the “block hours” and the in-house guy’s time. We uncovered that the client spent about 40% of the in-house guy’s time on IT issues, a $70K+/year employee. A simple cost analysis shows that the true costs are nearly double the expense for a professional, proactive, monitored, expertise rich, managed service on a monthly flat rate.

Now to compound matters…what are the older computers and software costing in lost productivity? You’ll hear more on that in our next newsletter. Suffice to say, the client is spending a great deal more than they need to, but it requires good advice and a deliberate approach to decent technology strategy.

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