Heading into the fourth quarter, it’s a great time to start looking for ways to trim the budget. Maintenance and support contracts are a great place to start when looking to uncover cost saving opportunities.
When companies can’t identify the IT assets required to run their businesses, they face a dangerous disconnect between their operations and the underlying technologies that support those processes. This quandary not only endangers the efficiency of their current operations, but it impairs their ability to take advantage of new, cost-saving strategies that can reduce capital and operation expenses.
When it comes to maintenance contracts, these cost-saving ideas might include:
- Inventory reviews and true ups. Accurate inventories are critical, and that’s always the first place we start. True ups are also an integral part of overall inventory reviews. That’s where we determine which assets have been added or de-commissioned, and then we compare that inventory against upcoming maintenance renewals. This helps eliminate any denials of coverage or payment for support that isn’t needed.
- Levels of Service (LOS) and End of Service Life (EOSL) reviews. We also recommend a review of your service levels to make sure you have support is where it’s needed, as well as a review of assets that may be nearing their EOSL dates.
- Co-term and consolidation strategies. Depending on your situation, it may make sense to consolidate several maintenance contracts with multi-vendor or third-party support plans. You can also arrange co-termination dates for your support contracts if you need to change your support level or simplify your maintenance procurement schedule.
- Asset tracking. Loading all assets into a tracking portal for easier management can save time and money. Here’s a quick demo of our asset tracking portal:
There are a number of best practices to consider when managing maintenance and support contracts, and we’ve blogged about these before.
Remember, managing maintenance and support contracts can be a very demanding endeavor, and most companies struggle to do it cost-effectively. Business applications require extreme vigilance from IT departments and ongoing maintenance and support for their underlying infrastructure. Sign up for a free assessment and uncover opportunities for significant savings.