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Most of the small and medium-sized enterprises (SMEs) have been found to be spending a lot of money on their information and communications technology (ICT), which ultimately contributes to the existing financial burdens.
Reabetswe Motsamai, marketing and communications manager at MakwaIT Technologies, says SMEs are struggling with cashflow, and many resort to personal funds to stay afloat.
To cut costs, Motsamai suggests SMEs reconsider their tech budget and spend less.
Motsamai says SMEs are faced with fuel and electricity costs which have skyrocketed, the repo rate is also at a record high, and the exchange rate remains volatile.
She says the National Savings Month, observed in July every year, serves as a timely reminder that businesses need to prioritise cost-saving measures.
“A healthy savings buffer can also help SMEs weather disruptions caused by the potential return of load shedding, strikes, and economic volatility – all factors that can significantly disrupt cashflow. But most importantly, it empowers SMEs to invest in their future growth,” she says.
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She says, according to the South Africa SME Tech Index, some SMEs spend well over 10% of their budget on tech. Motsamai identifies this area as an opportunity to cut costs. Spending too much money on tech can strain an already strained budget.
Motsamai advises businesses to get managed information technology (IT) services to avoid investing in the latest technologies or expensive equipment. She says the managed IT services are often responsible for the day-to-day management of a company’s IT infrastructure. This includes proactive network monitoring, cybersecurity, cloud computing, data backup and recovery, and help desk support, ensuring a comprehensive and reliable IT environment for the business.
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Motsamai says there are other benefits to using managed IT services, as they can help mitigate other expenses. She highlights that cost reduction measures can be further amplified by employing hybrid work models. Making use of managed IT services ensures secure and reliable connectivity for remote teams.
“Proactive IT infrastructure monitoring by managed IT services also helps to detect and resolve network issues before they disrupt employees, regardless of location. This preventative approach minimises the impact of system downtime, safeguarding the organisation from potential losses in productivity and revenue,” she says.
Furthermore, Motsamai says the shift to remote and hybrid work models has unfortunately exposed a cybersecurity vulnerability, with 61% of companies experiencing data breaches. This is a concern, especially for SMEs, which are often targeted due to their perceived weaker defences.
