How SMBs Can Take Control of IT Spend
Fixing the Hidden Costs of SaaS, Subscriptions, and Services
For most small and midsize businesses, technology is a non-negotiable part of daily operations. But managing the cost of that technology? That’s a different story.
From forgotten SaaS renewals to duplicated tools and off-contract freelance services, IT spend often escapes scrutiny. And without a clear system to track and control it, even lean organizations can end up paying for more than they use—without even realizing it.
If you're running on spreadsheets, emails, and company cards to manage software and services, you're likely missing opportunities to cut costs, stay compliant, and gain full visibility.
Why IT Spend Gets Missed in Small Business Budgets
In SMBs, IT purchases tend to happen in the background. One team signs up for a time-tracking tool. Another starts a free trial that quietly turns into a paid subscription. Someone else hires a contractor to fix a tech issue—no purchase order, no formal process.
The result?
Subscriptions that auto-renew without review
Vendors with unclear scopes or duplicate roles
Fragmented payment methods (cards, reimbursements, invoices)
No reliable tracking of usage, ownership, or approval
Because digital purchases happen fast and often feel “low risk,” they rarely follow the same oversight as larger expenses. But over time, they add up—draining budgets, complicating audits, and limiting your ability to make strategic decisions.
The Hidden Costs of Unmanaged IT and SaaS Spend
Even if it feels manageable now, unmanaged IT spend can introduce real risks:
Budget Creep: Dozens of small charges can quietly inflate monthly spend without triggering alarms.
Compliance Gaps: Shadow IT—tools and services purchased without IT or finance involvement—can expose sensitive data to risk.
Missed Renewals: Subscriptions may auto-renew long after a tool stops being used.
Inaccurate Forecasting: When you don’t know where the money’s going, you can’t plan accurately or negotiate better terms.
Worse, it often takes a triggering event—like an audit or year-end review—to uncover the depth of the issue.
IT Spend Management Best Practices for Small Businesses
Fortunately, SMBs don’t need an ERP or in-house IT department to gain control. These best practices offer structure without complexity:
1. Centralize Requests
Use one portal or intake form for all software and service-related purchases. This ensures nothing slips through the cracks.
2. Automate Approvals
Route requests through pre-set approval workflows. Finance or department leads should see what’s being requested—before it’s purchased.
3. Tag Spend by Department or Project
Categorizing purchases helps track ROI and ensures spend is aligned with business goals or client billing.
4. Monitor Renewal Schedules
Set reminders for license renewals and contract expirations. This allows time to assess usage before charges hit.
5. Consolidate Vendors Where Possible
When multiple teams use similar tools, consolidate spend with a preferred vendor to reduce costs and simplify support.
Platforms like the PREMIKATI Marketplace are built for this exact need—giving SMBs an affordable, easy-to-implement way to manage purchasing across teams, tools, and time.
Case Study: How One SMB Saved 20% on SaaS Costs
A 50-person marketing firm discovered they had over 70 active software subscriptions. Many overlapped or had gone unused for months. No one had full visibility—until their monthly spend started climbing without explanation.
By adopting a centralized procurement platform:
They mapped all tools by team and use case
Cut redundant licenses across departments
Set up renewal alerts and standardized vendor approvals
Within 90 days, they reduced SaaS spend by 20%—without removing any tool actively in use. The finance team finally had real-time visibility, and department leads could manage spend without sacrificing autonomy.
Simple Steps to Track and Reduce IT Spend Today
You don’t need to fix everything at once. Start here:
Choose one category—like SaaS subscriptions or IT services.
Build a simple request process—a shared form is enough to start.
Log every new tool or service—even if it’s under $100/month.
Review usage quarterly—cancel, consolidate, or renegotiate.
And if you’re ready to streamline the whole process? PREMIKATI Marketplace offers built-in approval flows, real-time reporting, and Amazon Business access—all without IT involvement.
FAQs: IT Spend Management for SMBs
What is IT spend management for SMBs?
IT spend management for SMBs refers to the process of tracking, controlling, and optimizing costs related to technology—like SaaS subscriptions, hardware purchases, and freelance IT services—without the need for a dedicated IT department.
How do I reduce software subscription costs for my small business?
Start by auditing your current tools, identifying unused or overlapping subscriptions, consolidating vendors, and setting up alerts for renewals. A procurement platform can automate much of this process.
Why is “Shadow IT” a risk for small businesses?
Shadow IT refers to technology purchases made outside of standard approval processes. It introduces risk because finance, IT, or leadership may be unaware of how the tools store data, manage access, or comply with internal policies.
Ready to Take Control?
If your IT and services spend feels scattered or invisible, it’s not your fault—it’s the nature of how SMBs grow.
PREMIKATI Marketplace helps small teams gain control of tech spend with enterprise-grade tools that are easy to use, affordable, and fast to implement.
