Business Library

How to acquire IT equipment

Once you have decided on your IT requirements, the next step will be to determine how best to acquire the computer's components/services. There are several ways you can do this:

Buying

Buying IT equipment is similar to buying any piece of capital equipment or asset. You need to define your requirements before shopping for the best price and service. Once you have made this decision, you can go straight to the manufacturers or via a retail store, but make sure you check the creditability of the supplier.

Leasing/Renting

Leasing provides businesses the ability to have use of up-to-date equipment without having to commit to large outlays of cash. As with buying, you will need to determine exactly what you need and how much you are willing to pay for it. To ensure that you have significant information to compare, you should look for companies that specialise in leasing equipment and provide each company with a written statement that details your requirements.

When you receive various quotes you should pay attention to the following:

Size of the payment and how often it needs to be paid
Reputation and references of leasing company
Equipment/service insurance policy
Comprehensible and valid agreement

If you decide to lease the equipment you will have to enter into a lease agreement. This is a legal contract, and it is advisable to have it checked by a solicitor. There are benefits and drawbacks to leasing.
Advantages include:

Free working capital
Tax benefits
Keeping up to date with the latest technology
Flexibility in addressing need and suitability
Maintenance support

Click here to request a leasing quote today

Disadvantages include:

Overall long-term cost
No ownership interest
Commitment to agreement

Outsourcing

Outsourcing is a contractual service between two businesses, where one employs someone outside the company to provide a function, service or set of services, rather than using in-house employees. Used sensibly and carefully, outsourcing can be the perfect solution for many difficult growth and expansion problems in businesses of any size. It can be cost effective and an efficient way for businesses to receive highly technical and specialised services.

An outsourcing contract itself can determine the success or failure of businesses; therefore, it is vital that you pay close attention to all of the legalities involved. Businesses can obtain information from a variety of sources, including the Outsourcing Institute, which is a professional association that can help with your outsourcing requirements.

There are a number of advantages to outsourcing:

It reduces IT costs while maintaining complete management control
You can gain access to skilled and experienced technical professionals
It allows your business to focus on other core activities

However, drawbacks include:

Sensitive information stored on your servers may be available to the outsource company
'Hidden' or other overhead charges may emerge, such as additional charges for emergency support

Action Checklist:

Establish your requirements
Research costs for each method
Establish additional services provided and their costs
Thoroughly check any legal aspects of your agreement

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