How to Transform Your Organisation’s IT Dept. from a Cash-eater to a Profit-maker?

November 13, 2019

How to Transform Your Organisation’s IT Dept. from a Cash-eater to a Profit-maker?

The financial overheads surrounding any organisation’s IT department are often undesirable and unwarranted. Many organisations tend to move away from implementing the latest technologies- starting from RPA to Big Data Mining- because they feel that the end results will hardly justify the investments.

However, to turn profitable, the only way to go is the ITaaS way. There are many reasons why. Perhaps the three major reasons are issues in making the IT department more profitable are because they avoid mistakes, provide better returns on investment or ROI and increases operational abilities.

Transforming the IT department

Apart from the cost factors, other reasons why many organisations need to pull their socks up and makes their IT departments working and in great shape. It provides revenue retention, reduces unused man-power and also improves the growth strategy of any company.

  1. Greatly reduced operational costs:

Post the inception of The Cloud, most mid-level businesses rely on the fact that operational expenses will go down significantly. Using the most updated IT services can save both data and other materials and then list a host of reactions of how the company would solve issues later. Cost-saving is the probably the biggest boon of using modern technologies on a wide scale. Also, it leaves more resources for other departments.

  1. An ITaaS way of working without wastage

Before the idea of SaaS seemed so popular, people had to go to the vendor as soon as they can. Now that ITaaS is here, it seems as though IT transformation is on the rise. Some top executives complain that ITaaS does not do enough to cut costs but adds to overheads. Other CIOs focus on the ‘Agile Practices’ which are introduced as a result. They must take care to hire the right team of individuals which can co-ordinate in tandem to ensure that the right practices are followed, however.

  1. IT questions to pose

A digital strategy to just a matter of digital technology implementation. Before implementation starts, the nagging issues on the ground must be addressed by asking the right questions. Once a proper team is in place and all extant issues are known, however, the mistakes can be avoided. Some of the questions that an organisation can ask itself are:

  • How can we prevent market erosion?
  • Are we doing enough to prevent customer churn?
  • How can we use IT to add customer value?
  • How can customer cannibalisation be prevented?

These are issues which bother almost every enterprise.

  1. Seeking out new ideas

This approach to business works in the IT department too. Newer and fresher ideas always create an impact when older approaches do not yield the required results. The entire C-Suite must work collectively, and one message- that the IT department does not operate in a vacuum- has to be spread across several departments. Newer approaches often have superior value in the long run.

With the right strategy, the IT department can be turned around in the green. But no organisation can expect magic and instantaneous results. IT returns may take time, but they often leave a lasting mark.