Managing Your Maintenance Contracts and Costs in Six Steps - Part Two
My last blog post featured the first three of our six steps for taking a more proactive approach to managing your support contracts and reclaiming more of your IT budget for business and productivity growth. Here are the remaining three:
1. Look for better options.
Every time your support contracts are up for renewal, you have the option to make changes or look for better options. For example, you might consider consolidating several maintenance contracts with one vendor into a single master contract, or you may choose a third-party maintenance solution. Both these options can yield significant cost savings and help simplify your contract management processes.
2. Improve your communication and documentation procedures.
Improving communication and documentation procedures in your company can help alleviate many common maintenance contract issues. For example, in some companies purchasing departments simply pay for the renewals without ever consulting their IT departments. When that happens, companies continue to renew their platinum-level support for equipment that their IT departments have repurposed for non-critical applications or even retired altogether.
Likewise, changes in your organization may warrant a change in your support levels and which renewals you purchase. Consider this for example—have you had any support engineers leave the company? You may need to increase a few of your support levels to compensate for a loss of in-house expertise.
3. Research the Return on Investment (ROI) for new equipment.
It’s possible that you could achieve a higher return on Investment (ROI) on new equipment and achieve better performance with more cost-effective power consumption and energy efficiency. Naturally, this research requires time to perform the necessary calculations, so save this step for last. If you’ve followed the other steps outlined here, you’ll have the time you need to make informed decisions.
If you’re concerned you don’t have the staff or the time to work through these steps on your own, you might consider our Support Renewals Health Check Services. We’ll work with your maintenance team to simplify your support contract management process, review your inventory, identify possible consolidation and co-term strategies, and explore whether you’d benefit from an asset-tracking tool. If you have any questions or comments, feel free to post them below.