Cost Reduction Approach

IT Cost Reduction: 5 Ways To Cut Expenses

There is no such thing as a perfect time putting a wonderful idea into practice. You are not always financially, logistically, or time-wise ready to construct the product of your dreams. The harsh reality is that the free market will not linger until you have enough money, time, or perhaps an entire team to flawlessly implement your concept. As the recent flu pandemic and crisis have demonstrated, business faces significant challenges from reality.

Unfortunately, many brilliant ideas fade into the background as a result of poor execution or non-realization.

As a Business Consultant, I’ve helped a number of startups put together the right players for their ventures. Our startup development experience has taught us particular rules and standards to obey in order to minimize IT costs. This article will go over how to save money on IT while still creating a high-quality product.

IT Cost Reduction: What Factors To Consider?

So, exactly what is IT reduction in cost? Obviously, the process of reducing development costs. In those other words, cost savings answer the question of how to generate a merchandise item for a lower cost. But, before we discuss exact techniques of IT reducing costs, I’d like to draw your attention to three points.

IT Development Is A Priori Costly

When we talk about cost reduction, we mean reasonable cost reduction through the eradication of unnecessary expenses. However, you must recognise and live with the fact that IT progress is really quite costly. You has to be willing to pay extra for a high-quality result. Entering a blind economy is the worst thing you can do for your company.

In those other words, you won’t be able to buy an authentic Dior pouch from Shein.

In other words, Shein will just not sell you an authentic Dior bag.

Cost Reduction ≠ Cheapness

Again, cutting costs does not necessarily imply striking a bargain at any cost. Take into account all dangers, your main company’s primary advantages, and sales channels before you cut costs. Furthermore, each company is distinct and has its own distinct value. So, when trying to cut IT costs, make sure you’re not “having to cut” off ones value added in the procedure.

For example, if your product isn’t innovative and your key selling point is usability, Mockup is the last location you should cut costs.

Similarly, if you promise your users complete data security, savings on data protection tools is not really a good idea.

Do You Actually Need To Reduce Costs?

We were all taught at school that efficiency means accomplishing the most with the least effort and resources. But, whenever it pertains to company performance, must users always cut corners?

Trying to cut IT costs is indeed a waste of time if you earn enough money to protect your production costs. However, I presume that cost-cutting in IT is a viable solution for eager young startups as well as smaller businesses.


Startups are frequently made responsible to shareholders for the funds raised. As a result, aspiring entrepreneurs can optimise spendings and create a better product inside of their budget restrictions by cutting costs.

5 Ways To Reduce IT Development Costs

So, where are some specific methods for reducing IT costs? Here are a few of the most well-known:


Simplify The Design

When contemplating ways to reduce operating costs, one of the first options that come to mind is layout. However, users must not put too much emphasis on layout inside the early phases of product development. The core premise of creating a Lower limit Viability Goods is to start creating the simplest version of a item that needs to perform the most appropriate function. The simpler the layout, the shorter the time required to develop the goods. Simplifying your design can help you end up saving up to 70% on expenses.

Furthermore, the cost of developing your app will be ascertained by if you really need to start from scratch or redesign an existing app. The price varies according to the design complexity:

Outsource To A Remote Team

Another way to save money is to hire a distant outsourcing company in Eastern Europe. This type of change might help you substantially decrease costs while still obtaining high-quality work at a low hourly rate.

Outsourcing in the United States, for instance, will cost you somewhere around $100 as well as $180 per 60 minutes. Devs in the United Kingdom or Europe would then charge between $60 and $100 per hour. Outsourcing to Ukraine will cost you between $35 and $50 per hour. Having said that, the job will be of high quality and completed quickly.


Furthermore, if you want an ego squad with niche experience and knowledge, as well as project schedule involvement, offshoring is an excellent product. To gain knowledge more about the benefits of outsourcing, check out our post IT Insourcing Guide: Concept, Types&Models, And Reasons To External Provider.

Shift To Digital Cloud

You may be accruing unnecessary costs if you run your business on a physical server. By eliminating on-premises costs, relocating your data into the cloud might save you hundreds of dollars. Cloud-based solutions also remove the requirement for device replacement and maintenance. Instead, you could indeed easily switch between all of the setups at any time. Furthermore, as your business grows, you can alter your expenses and utilisation.

Staff Augmentation

Outsourcing isn’t your only option for growing your team. Assume your main team is overburdened, but you need “fingers” for a side gig to finish unit tests in the short term.

Once you hire a new squad, you will be willing to take responsibility for all job duties and responsibilities, such as hiring and training, as well as providing insurance and other social aid for a brief venture that may be burdensome.

Excessive outsourcing is also possible. When you consider outsourcing, you are working with more than just developers. Brand and project supervisors, creatives, and QA engineers are also members of outsourced teams.

In this case, staff augmentation is the best solution. You gain full control and ensure that the team will only work collaboratively for you by supplementing the team.


Automation Of Processes

Working a little often means working well enough. Instead of employing a large number of manual employees, users could benefit from automating the process now. Here are a few examples of automatable processes:

  • Job scheduling (Connectteam, Humanity, Calendly);
  • Recruiting process (Paradox, Seekout, Xor);
  • Software Maintenance (Automation of Testing, Code Reviews, Production Monitoring).

Labor costs are replaced by apps and setup costs in the case of automation.


IT cost reduction is an efficient way to increase your company’s effectiveness. When you’re working with a limited budget as well as resources, trying to cut IT costs can extend the life of your product. Outsourcing a squad is one way for businesses to cut costs without compromising quality.

ecodesoft is a team of product development experts with a combined six years of experience. Check out our cases by having to click here.

Please contact me if you are serious about learning how to reduce expenses in your business.