Every SME wants to save cost. The real challenge is understanding where the savings actually come from.
In technology, the cheapest product isn’t always the least expensive — and the most expensive one isn’t always the best investment. The truth sits somewhere in between, inside a principle many overlook: total cost of ownership (TCO).
TCO is the real price of using a product over its entire life cycle — not just what you pay upfront.
When you buy a piece of equipment, you’re not just paying for hardware. You’re also paying for energy consumption, support, maintenance, spare parts, and downtime when it fails. That’s the cost most SMEs forget to calculate.
1. Shift Focus from Purchase Cost to Lifecycle Value
Buying decisions must move beyond the initial price tag.
The right question isn’t “How much does it cost to buy?” but “How much will it cost to own?”
For example, two laptops might have a ₦100,000 price difference, but if one lasts two years longer, consumes less power, and comes with next-day service, it’s the better deal.
When your procurement decisions account for durability and support, you stop overbuying and start optimizing.
At Gitech, we encourage every client to think in lifecycles, not transactions. A system built to last five years but maintained properly could deliver seven. That extra time is free profit.
2. Track the Hidden Costs
Hidden costs in IT procurement are everywhere — poor installation, power inefficiency, cheap cabling, unlicensed software, or lack of warranty coverage.
They often don’t appear on invoices, but they show up later as downtime, staff frustration, and emergency replacements.
That’s why procurement should never happen in isolation from IT operations. Your IT or service partner must be part of every major purchase conversation. They’ll identify risks that a purchasing officer might miss — especially when it comes to compatibility, configuration, or maintenance needs.
A hidden cost prevented is a profit recovered.
3. Build Predictable Cost Models
One of the smartest things an SME can do is turn unpredictable technology expenses into predictable, budgeted costs.
This is where service contracts, managed IT plans, or extended warranties make sense — not as luxuries, but as control mechanisms.
When you know what your monthly or annual IT cost will be, you can forecast accurately and make informed financial decisions. You no longer need to “wait for something to break” before spending. That shift from reactive to proactive cost management can stabilize cash flow in ways most business owners underestimate.
Predictability is power. It gives you control over your technology, not the other way around.
4. Standardize Your Procurement Catalog
Cost control becomes easier when your organization standardizes what it buys.
Instead of purchasing multiple brands of routers, monitors, or UPS systems, select two or three approved models per category and stick with them.
This approach reduces configuration time, simplifies maintenance, and allows for bulk negotiations. It also ensures your IT environment is consistent, which improves both performance and support response.
At Gitech, we maintain catalog templates for our clients — pre-approved SKUs that balance price, reliability, and availability. It’s a simple tool, but it removes confusion from day-to-day procurement.
5. Audit Your IT Assets Periodically
You can’t control what you can’t measure.
An annual or semi-annual audit of your IT assets helps you identify underutilized equipment, expired licenses, or outdated systems. It also reveals patterns — which brands last longest, which vendors meet SLAs, and where inefficiencies exist.
These insights directly inform smarter procurement decisions. When you understand your technology footprint, you stop overspending on what you already have and focus on what truly drives performance.
Gitech’s Managed IT Services give SMEs full visibility of their technology costs — transforming unpredictable IT expenses into stable, controlled investments.
Call us so that we can tell you more about our Managed IT Services
Jimi Fadipe
ceo- Gitech