Taking the Cost out of IT in the Recruitment Sector
In insight / By Mark Flynn / 24 July 2018
In a competitive market, being able to make savings and reduce operating costs means your business has the reserves available to take on new investment opportunities, expand your business or keep operating during slow periods.
IT is one of the main areas that recruitment businesses can make savings. Are you building these cost savings into your cloud business case?
1. Start building your plan to move to the public cloud
IT can often account for a large proportion of costs in a recruitment business, especially if systems are delivered in-house. The costs of maintaining a data centre, support renewals, hardware maintenance and the staff to look after your IT environment can quickly add up.
Many common applications in the sector are now delivered as SaaS (Software-as-a-Service), making the move to cloud even easier.
Why pay for data centre space, data centre facilities, staff time to manage a data centre and IT systems, hardware and software licensing management when it’s easier and more cost-effective to move your Microsoft Office applications and collaboration tools to Office 365, and use cloud-based SaaS solutions for your finance and CRM systems.
And with Nasstar’s hybrid delivery solutions, you can secure these cloud services within a hybrid cloud model to better protect your IT and data.
2. Use technology to enable better productivity
If you are expanding globally your international colleagues can start feeling like the poor relations because of badly performing business systems which start to severely impact their productivity and morale especially if it is your CRM system.
Badly performing systems cost you time. Staff can’t log in, tasks can take twice as long to complete or employees don’t have access to the most up to date versions of applications that they need to do their jobs quicker.
This is just one way in which poor IT can impact on productivity, but also think about the impact on productivity when your business needs to scale.
We recently worked with a client who wanted to grow their business and open a new location in the United States, however, their UK IT partner couldn’t facilitate the move to the US. When they had originally started the recruitment business, they had contracted a local IT support company who offered standard UK support hours and provided them with a UK telephony system. Now that they wanted to launch an office in the US, their telephony system couldn’t scale and their support hours didn’t match with the US workers’ work schedules. Staff could be without access to their PC for hours due to something as simple as forgetting a password whilst they waited for the UK support company to come online and respond to support tickets.
This costs money, resources and time, so think about how you can use cloud services to increase productivity and look for technology partners who can support you in your business growth.
3. Reduce costs through mobility
Cloud services, and as-a-service applications and tools mean that you can avoid many of the traditional costs of setting up a new office. With Office 365, your staff can work from anywhere if they have an internet connection; sharing files, making calls and accessing their Office applications on the go.
You don’t need to pay for a full office in a new location if the staff can instead hot-desk or work remotely via their laptops and cloud applications. We often speak to clients who want to reduce their IT costs – but if they instead reduced the number of desks within their city centre offices which tend to have huge real estate price tags in favour of more agile hot-desking, then the reduction in space and rental costs could be massive. By reducing the amount of real estate you need, you can make huge cost savings by moving staff to a hot desking or remote working model.
4. Don’t ignore the cost of not being secure
Whilst we encourage recruitment firms to be fluid and mobile in their practices, they also need to be mindful of protecting their business IP.
A common challenge in this sector is protecting data from rogue employees who may try to extract critical business information from systems prior to, or after, leaving your business. Think about the cost of future lost candidates if your hard-earned candidate data is leaked. Properly securing your cloud solutions and applications can protect against employees extracting sensitive data, whilst retaining the flexibility and mobility advantages provided by the cloud.
On the other side, there are also the standard security considerations to think about. Aside from the fines and penalties associated with GDPR infringements, do you want to risk having cybercriminals effectively wandering around the digital corridors of your business; stealing information and data, diverting funds and damaging your business’ reputation? Cybercriminals are also targeting recruitment business owners who may be likely to be involved in property sales or high-value transactions, gaining access to their personal data through business systems in order to defraud them personally.
It is also common practice for Cybercriminals to target high net worth recruitment business owners who may, for example, be involved in a property purchase, gaining access to their personal data to divert funds by hacking into your business in order to defraud them personally.
Proper security controls reduce the chances of a breach happening, or at least, notify you quickly if a breach has occurred rather than finding out a month later that your critical business data has been regularly transferred to a cybercriminal or rogue employee.
Don’t risk the cost of a security breach.
5. Good times, bad times – aligning IT costs with business activity
You can’t guarantee how your business is going to perform. You need an IT system that can scale or flex down to suit your business needs.
For expansion plans, you need to be able to spin up services which can scale in line with employee headcount increases, perhaps on a per user per month basis. This means your IT spend is in line with your employee costs rather than having to build an office, a data centre and IT environment that can accommodate an entire office of staff when you initially only have two employees in that location.
On the flip side, for times when the business is struggling, you need to have the option to wind down your IT costs. Many businesses that need to close operations in a location often can’t reduce their cost base because they still have high IT costs if they own their IT, so they feel the double impact of reduced revenue with the same high operational costs. If you use SaaS solutions then you can quickly reduce your IT costs in line with a workforce reduction or office closure.
Find out more about Nasstar helps recruitment businesses reduce their IT costs.
HPE and Nasstar
Nasstar is one of the UK’s leading managed IT service providers. We deliver bespoke clouds, professional services, managed IT and a range of technical products to organisations operating within four strategic industry sectors - with a particular focus on the recruitment and legal sectors. Powered by HPE enterprise technology, across HPE servers, HPE 3PAR and more.