The Federal government spends an average of $9.1 billion on commercial software which results in about 42,000 transactions. Unfortunately, it also results in spending 30% more than necessary for software. IT Asset Management (ITAM) can help prevent overspending.

Although mostly known for keeping an inventory of IT assets, ITAM goes beyond by collecting IT asset information of hardware and software licenses to extend their value. It includes asset lifecycle management, cost management, and contractual management. ITAM goes even further and joins departments to develop better business practices and ultimately a better output.

Here are the top 5 reasons the government sector should invest in ITAM:

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1) Optimize Taxpayers’ Dollars

The responsibility of the government sector is to optimize taxpayers’ dollars. Evidently, organizations will need to purchase computers and software licenses to run smoothly. However, at such a large scale it is easy to overspend and even be unaware of IT costs throughout the organization. Some of the cost reduction benefits of ITAM include automating processes, maintaining an updated inventory, avoiding penalty fees, monitoring maintenances and improving purchasing power with vendors.

2) Manage IT Asset Lifecycles

One of the main benefits of IT Asset Management is tracking the complete lifecycle of your assets. This includes several processes like an employee requesting a new asset, managing purchase approvals, procurement, provisioning IT assets, recycling IT assets, and the retirement of the assets.

Why is this important?

By tracking where your IT assets are in their lifecycle, you can better prepare for budgets, better forecast for new equipment and know where your assets are, regardless of whether or not you manage IT in multiple locations across the country. Also, IT assets are a large portion in the asset column on your financial sheets and mismanagement of large purchases is not an option in the public sector.

3) Avoid Audit Penalties

Audits can be done at any time during the year. They usually catch organization off-guard with little to no time to prepare a proof of purchase and the number of licenses they are using. However, having ITAM allows organizations to have this information on-hand. Thus, reducing the chances of being penalized and getting fined.

4) Easily Access Vendor Information

ITAM focuses on keeping IT asset information updated and in one central location. As a result, you are better prepared for contract renewals, can easily keep an eye on warranties, and stay up-to-date on maintenance services. Having this insight increases your chances of better negotiation with vendors & potentially reduces costs, ensures vendor compliance, and improves budgeting and forecasting. Best of all, the information about your vendors, their contracts and previous negotiations are in one place!

5) Improve security

ITAM ensures insight into what you own and creates processes around them. Thus, providing insight on what to protect and how to protect it at every part of the process. Further, ITAM encourages creating processes that restrict employees from accessing information.

In an ITAM solution, like VIZOR, for example, IT asset information can be shared with Department Managers. However, it is in a “view only” state, making it impossible for employees to tamper with the data.

In another case, IT in government organizations sometimes manage multiple locations across the country. VIZOR makes it possible for each location to access their own IT asset information without mixing it up with other locations.

Here is the full eBook describing each reason the Government Sector should invest in ITAM