What is IT Budgeting?
IT budgeting is when a company allocates money to various IT programs.
It lists funding for all projects and technologies within departments. Examples include recurring expenses such as staffing or one-time expenses dedicated to specific projects or initiatives.
Some companies treat this as an annual exercise, although far better, it should come from a carefully constructed IT strategy and implementation plan.
An IT Budget is crucial, as it provides a holistic view of the business and the funding requirements, and additionally it allows the management of the company to use it as a tool to aid in communication and planning.
Best practice and tips for planning your IT budget.
- Align spend to business priorities
If you don’t have an IT strategy – use your business priorities to steer your IT.
- Involve relevant stakeholders
Talk to relevant managers across the business to understand their needs (now and in the future) and to gain buy-in for your initial ideas and strategies.
- Plan for the worst
When planning your IT budget, you will need to take into consideration that things might go wrong. Set aside a portion of your budget for ‘disaster planning’ so, for example, if one or two servers do go down, there will be funds available within your IT budget if required.
- Purchase wisely
Look at every IT cost in the organisation to check that you have the best value option. This doesn’t mean the cheapest. Make sure your purchasing policy regarding any IT investments makes sense.
- Plan for upgrades
Make sure you allow some money in the budget to enable you to make any changes or upgrades you may need that year.
- Invest in intelligent, integrated solutions
The IT sector is not an area where businesses should cut corners. By investing in intelligent, integrated solutions that can add value across multiple functions (e.g., payroll, safety and security, etc), your business can optimise the spend and benefit from the IT infrastructure.
- Review your budget more than once a year
Budgeting is often done on a calendar basis because of the convenience. Instead, try and review your IT budget plan based on strategic goals and regular milestones.
- The IT budget is a work in progress
Don’t consider the budget to be set in stone. Be flexible to allow for changes in demand from the business and your customers, as well as potential new or alternative technologies emerging.
- Invest in good IT support and development
While it is true that tech has a fluid nature, the fundamentals of good IT support and development do not change. Investing in the support of someone, or a third party, who has strong core principles will always pay good dividends.
You know where we are.
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