According to a Forrester Research study, nearly 70% of non-profit organizations have cut their IT budget due to the recession. And the remaining 30%? Well, they’re not spending much on IT either — and that’s down from 40%.
The news isn’t all bleak: Non-profits are using fewer people and less space, and they’re getting more value out of their technology investments.
Many non-profits are turning to cloud computing as a way to save money. Instead of buying servers and software, they’re renting them from IT consultant service providers.
That doesn’t mean they’re giving up on technology altogether. On the contrary, non-profits are still investing in social media, mobile devices, and analytics software. But they’re doing it more smartly, using less expensive tools and finding ways to get more out of them.
Cost-Cutting Ideas for Non-profits organization
- Evaluate your IT needs and get rid of anything you don’t need.
- Use cloud computing instead of buying servers and software.
- Rent space rather than leasing or buying office space.
- Use less expensive technology tools.
- Offer value to the technology you already have.
- Find creative ways to raise money for IT investments.
- Make sure your employees are using technology to its full potential.
- Think outside the box when it comes to technology investments.
How do they cut costs on the IT side?
They use fewer people and space. How do they use less people? Outsourcing, offshoring, and automation. In other words, they are using technology to eliminate the need for more people.
That’s a good thing because it’s becoming increasingly difficult to find qualified employees. The recession has forced many people to leave the workforce, and the technology industry’s growth has made it challenging for companies to find employees with the right skills.
Outsourcing and offshoring can help non-profits solve that problem. It’s also a way to get more value out of your technology investments. By using less expensive technology tools and getting more value out of them, non-profits can put more money towards their top priorities.
Ways non-profit organization follows to reduce their IT budget
Reduce the number of employees with IT responsibilities
Outsourcing, offshoring, and automation are the main ways non-profit organizations reduce the number of employees with IT responsibilities. Use technology to eliminate the need for more people; non-profits can put more money towards their top priorities.
They can also get more value out of their technology investments by using less expensive tools and looking for methods to get more out of them. For example, non-profits can hold fundraisers, apply for grants or partner with companies that are interested in assisting them to get the most out of their technology investments.
Consolidate data storage services to reduce costs
Non-profits can also save money by consolidating their data storage services. Instead of having multiple services, they can use one provider that offers a lower price. This will also make it easier to manage their data and reduce the risk of data loss.
For instance, instead of investing in new analytics software, they may use a free tool like Google Analytics. But, of course, there are many proactive ways to use your end-of-year IT budget too.
Use open-source software when possible
Open-source software is usually free or very inexpensive. Many of these programs can be modified to suit specific needs, making it easier for non-profit organizations to get exactly what they need.
In terms of organizational capabilities, non-profit organizations have adopted a wide range of capabilities from other sectors. For example, they use technology more efficiently by switching their analytics software to a free tool such as Google Analytics.
Redirect funds from other departments to cover IT expenses like hardware, software, and salaries
Non-profit organizations redirect funds from other departments to cover IT expenses like hardware, software, and salaries. While this isn’t a long-term solution, it can help the organization in the short term as they work on hiring more managed IT services staff or finding different ways to cut their budget.
Create partnerships with other non-profit organizations
Non-profit organizations may also be able to save money by creating partnerships with other non-profit organizations. It will allow them to take advantage of each other’s expertise and resources and better serve those in need. For example, one organization may provide the IT department for another as part of their partnership agreement.
Automate basic IT tasks
Non-profits can automate basic IT tasks like password resets, software updates, and troubleshooting. This allows the organization to focus its resources on more critical tasks. Not only is this a good way to cut costs, but it also allows non-profit organizations to keep their information highly secure because it is not kept on computers or servers at the organization.
Cut technology expenses by using a cloud-based solution
Non-profit organizations can cut technology expenses by using a cloud-based solution for backup and disaster recovery purposes. This allows them to keep the same level of service, even if they are unable to pay for more IT personnel. Not only is this a good way to cut costs, but it also allows non-profit organizations to keep their information highly secure because it is not kept on computers or servers at the organization.
Outsource non-critical IT tasks
Non-profit organizations can outsource non-critical IT tasks to save money. This allows them to focus on their main mission and purpose. Also, many companies offer affordable rates for their services, so non-profits can find one that best suits their needs.
Non-profit organizations are highly effective at cutting IT budgets because they work hard to find the most efficient technology methods. They save costs by consolidating their data storage services, finding more cost-effective tools, outsourcing, offshoring, and automation. They also take advantage of IT consultant service staff and partners that will allow them to save money on salaries and IT investments. Using a cloud-based solution can keep their technology expenses low while still maintaining the same level of service.