IT Support For Financial Firms

Using Old PCs for Your Business Costs More than You Realize

Using Old PCs for Your Business Costs More than You Realize

As a business owner or manager, you need to squeeze every bit of ROI out of your investments. Money doesn’t grow on trees after all. However, this mindset often drives business leaders to make penny wise, pound foolish decisions when it comes to the computers that their employees use.

Computers have a productive lifespan of three to four years and then they are ready to be recycled. Why? Because they are the daily workhorses that are used continually for eight hours a day, five days a week … that’s 2000 hours a year at a minimum! The cost to continue using an old computer is much higher than buying a new one.

The hidden (and not so hidden) costs of using old PCs

The number one cost of most businesses is payroll, and if this is true of your organization, then it is critical that you maximize the money you spend on payroll by providing your employees with the tools they need to do their jobs well.

Computers slow down over time, no matter how well they are maintained. This means that every single action that your employee takes on their old computer takes longer to complete.

For example, opening a PDF file on a new computer takes 1 to 2 seconds, but on a 5-year-old PC, opening that same PDF file can take 5 to 10 seconds or longer! Every second longer that the computer takes to boot up, load a program, open an email, or navigate the internet, is a second lost. And these lost seconds can easily add up to a half hour or more each day of lost productivity!

Now, let’s compare the cost to get a new computer with the cost of your information worker who’s using it over three years (PC cost vs. salary/benefits cost), and you’ll see why it makes sense to replace your PC’s instead of using them until they stop working:

1 – The cost for an average Windows business workstation with a three-year manufacturer’s warranty is $1000.

2 – The average cost for your employee who needs a computer to do their work is, say, $50,000 a year, or $150,000 over three years.

3 – Over those three years, the computer’s processing functions are slowing down and worker frustration starts to ramp up as it starts taking a bit longer every month to get the job done, especially when it’s an information worker using the computer to complete their daily work.

3 – The $1,500 machine for a $150,000 employee equals an investment of one percent of that employee’s salary to provide a decent tool to do his/her work effectively. That’s ONE percent.

4 – When you factor in the lost hours of time in a month that occur form working on an outdated machine, you’re seeing dollars spent on someone who cannot do the job as effectively (and is probably grumbling about it to co-workers); those dollars could have been saved by investing in a new computer that represents one percent of that worker’s salary (and greater employee satisfaction).

Make sure you discuss PC replacement with your IT service provider and find out what time line the firm recommends. Is it three years? Four? It’s important that you are proactive about managing your technology assets—including PC’s—and that you know in advance what the plan is for replacing them. This enables you to budget your IT expenses more efficiently.

As part of your budgeting process, you should also find out what the fees are for managing this process and handling the installation.

At IND Corporation, our comprehensive TotalCare managed IT services plan covers on-site IT support, which includes managing and installing computers within the fixed monthly fee. Our team will alert you to necessary and optional software upgrades and handle those installations as well.

Isn’t it worth it to you and your team to spend a small sum of money every three years (one percent of an employee’s payroll) to give them the tools they need—and a better user experience? Contact IND Corporation for a consultation about how our flat-rate TotalCare managed IT services can save your New Jersey organization money—and headache—when it comes to managing your corporate technology needs.