Want to Reduce IT Costs? Try These 5 Device Reconditioning Strategies

IT budgets are under constant pressure as organizations balance performance, security, and cost-effectiveness. Many companies overspend on new devices, overlooking more sustainable alternatives. The default approach—frequent device replacements—leads to high variable costs, unnecessary waste, and inefficiencies.

Instead of defaulting to new device purchases, IT teams can extend device lifecycles through reconditioning, leveraging cost reduction strategies that align with long-term cost management goals.

In this article, we’ll explore how device reconditioning can maximize cost savings, improve service levels, and optimize IT budgets without compromising performance.

What is device reconditioning

Device reconditioning refers to the restoration of used IT equipment to like-new performance through hardware and software upgrades. Instead of replacing devices, companies can repair, refresh, and optimize them to keep them running efficiently.

This approach extends device lifecycles, helping businesses maintain service levels while lowering hardware costs. A well-restored laptop or workstation can perform just as well as a new one but at a fraction of the cost.

Reconditioning also reduces e-waste and supports sustainable IT practices. Instead of discarding outdated devices, businesses can upgrade and reuse them, cutting costs while minimizing their environmental impact.

In 2022, the world generated a record 62 billion kilograms of electronic waste, yet less than a quarter of this was recycled. By upgrading and reusing outdated devices, businesses can cut costs while minimizing their environmental impact.

Reconditioned devices work seamlessly with cloud computing and virtualized servers, making them a cost-effective option for modern IT environments. With the right upgrades, they stay reliable, secure, and fully compatible with evolving business needs.

See also: Bulk-Purchasing Laptops? Cut Tech Depreciation Costs with Device Lifecycle Management

The hidden costs of frequent device replacements

Replacing devices too often can put a serious strain on IT budgets. While new equipment might seem like the best solution, frequent upgrades come with hidden costs that can quickly add up.

• High capital expenditures: Buying new devices regularly requires significant upfront investment. Many of these costs could be avoided by extending device lifecycles through cost optimization strategies like reconditioning or repurposing existing hardware.
• Ongoing maintenance costs: The more devices an IT team manages, the higher the variable costs of repairs, software licenses, and cloud services. Each new device comes with setup, security configurations, and licensing fees, making replacements more expensive than they appear.
• Data center expenses: Excessive device turnover increases reliance on data centers and IT infrastructure. Newer devices often require additional storage, networking, and security investments, which can drive up long-term IT costs.
• Short-term vs. long-term costs: While replacing a device might seem like a quick fix, the long-term costs of frequent upgrades can be much higher. Discarding hardware too soon leads to waste, inefficiencies, and avoidable spending, making it harder to maximize IT budgets.

See also: Not Upgraded Your Workers’ Devices in Years? Here's Why You Should and How to Get Started

5 strategies to reduce IT costs through reconditioning devices

Replacing devices too often can drain IT budgets, but reconditioning and reusing existing hardware can cut costs significantly. By extending device lifecycles and optimizing refurbishment processes, businesses can reduce unnecessary spending while maintaining performance and security. Here are five strategies to make IT budgets go further with device reconditioning.

1. Extend device lifecycles to delay refresh cycles

Not every outdated device needs to be replaced. Tracking device performance with IT asset management tools helps businesses monitor device health and determine when an upgrade is actually necessary. This prevents premature replacements and ensures that devices are used to their full potential.

Additionally, identifying reuse opportunities can lead to major savings. Many devices can be refurbished and reassigned rather than discarded. A well-managed inventory of reusable equipment helps companies avoid unnecessary new purchases and keep costs under control.

2. Automate and standardize the refurbishment process

A structured approach to reconditioning makes the process more efficient and cost-effective. Automating lifecycle management with the right tools ensures that devices are refreshed at the right time, preventing performance issues before they occur.

To further streamline IT spending, setting clear reconditioning policies helps IT teams decide when a device should be upgraded instead of replaced. Establishing these guidelines prevents unnecessary spending and makes lifecycle planning more predictable.

4. Recover and redeploy offboarded employee devices

When employees leave, their devices should not go to waste. Improving device recovery rates through a structured offboarding workflow ensures that IT teams can retrieve, wipe, and reuse offboarded equipment.

Certified data erasure is essential to protect sensitive company information. Restoring devices securely before reassignment reduces risk while maximizing the lifespan of existing hardware.

See also: Offboarding Devices in Hard to Reach Places: A Complete Guide

5. Reduce procurement spending through device repurposing

Instead of buying new devices for every new hire, businesses can adopt a store-and-reuse model. Maintaining an inventory of refurbished devices ensures that equipment is readily available without unnecessary purchases.

Additionally, minimizing variable costs such as frequent shipments and excessive hardware storage helps streamline procurement expenses. By making better use of existing assets, companies can significantly reduce their IT spending while maintaining productivity.

The impact of device reconditioning: Key statistics

As businesses look for ways to cut IT costs and improve sustainability, device reconditioning is proving to be a practical and effective solution. Beyond reducing expenses, reusing and refurbishing IT equipment helps extend device lifecycles, lower maintenance costs, and reduce e-waste. The following statistics highlight why more companies are adopting reconditioning as a standard IT strategy—saving money while minimizing their environmental footprint.

Cost savings

• Refurbished devices offer substantial savings: Research shows that refurbished IT equipment can be up to 80% less expensive than purchasing new devices.
• Lower maintenance costs: Reconditioned devices help reduce maintenance expenses, with studies on predictive maintenance showing potential cost savings of 15-98%. Refurbished hardware requires fewer repairs, extends usability, and lowers operational costs, making IT budgets more predictable.

Environmental impact

• E-waste crisis: In 2022, 62.7 million metric tons of electronic waste (e-waste) were generated globally, and less than 22.3% of it was recycled. This highlights the urgent need for businesses to shift towards device reconditioning to combat this growing issue.
• Projecting future e-waste growth: By 2030, the amount of e-waste is expected to exceed 80 million metric tons, further stressing the importance of sustainable practices like reconditioning. This not only reduces e-waste but also contributes to a circular economy where devices are reused and recycled rather than discarded.

Maximize IT savings with Deel IT

A smart IT cost reduction strategy doesn’t mean sacrificing performance—it means optimizing what you already have. With Deel IT, businesses can extend device lifecycles, automate IT management, and reduce procurement expenses without disrupting operations.

How Deel IT helps cut costs and improve efficiency

• Reduce IT costs: Reconditioning devices lowers procurement expenses and extends hardware lifespans.
• Improve service levels: Maintain high-performance IT environments without frequent hardware replacements.
• Streamline global IT operations: Manage reconditioning, repairs, and redeployment in 130+ countries with a centralized platform.
• Automate asset tracking: Get full visibility over deployed, refurbished, and reassigned devices, reducing waste.

Request a demo today to see how Deel IT can help your business implement cost-cutting strategies without compromising performance.