Is IT an investment or operational cost?

Is your office IT viewed as mere operational cost or is it viewed as a crucial part of investment for the future?

Is IT an investment or operational cost?

Inherently, there is nothing wrong with thinking of your office IT infrastructure as a simple operational cost, that is not the argument here. What we believe is there IT is a resource that can either be considered an investment or operational cost, never both.


Is IT an investment or operational cost?

IT as operational cost


As you know, much like the air-conditioning in the office, the stock of a pantry, staplers and pen; you can look at IT merely as a cost you have to pay, and most companies do just that. Does that seem like a very one-dimensional way of looking at it? If we view IT only as a cost, our approach should always be to spend the least amount of money possible. Cheapest computers, cheapest routers, cheapest cloud service providers and so on. Is it fair to compare a laptop to a chair? Or your IT infrastructure for furniture?

Is IT an investment or operational cost?

IT as investment


IT infrastructure is here to say and not go away. Offices may evolve, we may work remotely in the future, but your IT infrastructure always has to be there. Furniture and air-conditioning change and laptops change, but your infrastructure only upgrades. If you have to overhaul your IT infrastructure, this may indicate a poorly planned strategy to begin with, which brings us to our conclusion. IT is an investment.


How is IT an investment?


We are not claiming IT is an investment categorically, merely pointing our how we consider IT as an investment. And if you were to move your IT infrastructure from an operational point-of-view to an investment, you gain from it in more ways than we can imagine. Take an ERP system or CRMS system, for example; these are software automation which takes away a significant amount of workload from your staff. An ERP system is not there to replace your team members; they are there as a tool to scale your operations. A well-designed ERP solution can take away a substantial percentage of the workload, allowing your staff to focus on serving more clients.


If you were to invest more significantly into a highly efficient ERP system, reducing workload by fifty per cent, for example, half of your operational workforce is now automation. Investing in a CRMS system would also automate most of your client servicing and sales workload. Whether your solutions are based in local servers or are cloud-based, we see both ERP and CRMS type systems as a crucial IT investment.

Is IT an investment or operational cost?

But what about IT Hardware? Is that an investment?

We would still answer that as a yes. Most of your IT hardware stick around longer than your team members; there is no hiding that fact. Especially your local IT infrastructure. Switchers, FIle management servers, routers and LAN cables. As long as you are working from an office, we guarantee you have many technologies in place. A more reliable computer can last easily for five years in any corporate environment, and we can never underestimate the importance of a reliable printer to you.


IT is not just laptops and hardware; IT is your full technological environment. Your IT hardware is the literal window to your work, your cloud-based email servers, your storage servers your CRMS and ERP system. We should never underestimate being able to accomplish the task effectively and smoothly in the workplace.

Is IT an investment or operational cost?

How about IT cybersecurity as investment?


Maybe an essential piece of an investment your company could have is IT cybersecurity. Your list of clients, projects, staff list, finances and other sensitive information crucial to your company's competitiveness is exceptionally lucrative to hackers.


A comprehensive cybersecurity solution is a significant investment to maintain the integrity of not only your company's data but also your clients. It is utterly unreasonable that you have to make an effort to secure yourself from these hackers or online attackers. The internet environment is global, we still do not have a proper cybersecurity body to report to, and at best, we can only make a local police report for such crimes. And your country's law enforcement finds it challenging to investigate a crime committed from another country, especially one to which your own country has no formal relations with nor an extradition treaty.


Take it from us here at IT Block; we are entering a new age of cyberattacks. It is only going to get much worse. The best thing a company can do now, to protect their assets, is to invest in IT, heavily.

Thank you for reading 'Is IT an investment or operational cost?' by IT Block. IT Block is an IT support services provider based in SIngapore and we are a registered Google News source. #IT #support #services #Singapore #investment #operations #cost


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