The Definitive Guide to Careful IT Budgeting and Planning

Published May 25, 2020

The Definitive Guide to Careful IT Budgeting and Planning

IT systems have become a larger and larger aspect of every business on the planet. To get the most out of your IT department, you need to budget the right amount.

Budgeting should always be a thoughtful and specific practice, but as IT services shift and change, so too should your IT budgeting strategy. 

There are many little details you should consider when balancing your budget. We have the basics right here. 

Building Your IT Strategy

The biggest part of an IT strategy needs to be about flexibility and a constant refresh on what changes in technology and techniques may come.

When building a budget, there are 4 basic ideas to consider. 

1. Work With Other Departments

Knowing every resource you have available should go beyond the IT department. How other departments interact with your IT department and which employees can help in organization or communications are big things to consider.

If you can shore up weaknesses in your IT department with aspects of other departments, you can save a lot of money. 

2. Include All Levels of Maintenance

When many people are building a new IT department, they think of all the initial costs, the systems they need to buy, the cloud services they may need to invest in. 

These are important, but many forget about maintenance. Keeping your IT department going needs constant upkeep. This includes both employee salaries, but also equipment maintenance and industry research.

These costs can add up. Initial costs may feel like a bargain, but if you will struggle to keep up with maintenance, it won’t work in the long run. 

3. Upgrades

Technology is ever increasing. Where maintenance keeps the hardware and software you have working, upgrades are how you leap back ahead to the top of the curve.

When cyber threats adapt, you need newer software, hardware, and security techniques to protect yourself. When new levels of efficiency come up, it can be worthwhile to consider whether the upgrade’s benefits work with the cost.

4. Quarterly Forecasts

To tie all of this together, you need a strong method on how to keep up with industry changes. The general method of this is forecasting. With forecasts, you look ahead to potential changes and alter your plan to adapt to what is coming. 

A lot of companies do annual forecasting, which in the face of IT management is too slow. Major changes to technology and industry tactics can change as fast as every 4 months.

As such, quarterly forecasts can help keep you ahead of the curve. This means that even when a change comes right after a potential forecast, you have less time until the next forecast to correct your course. 

Professional Help

No matter your business strategy or size, building the best IT strategy sometimes needs professional help. Whether they are in expert employees or complete Managed IT Solutions, they can give you the precision and care you need. 

IT Budgeting to Boost Your Business

Understanding how your IT budgeting will affect your business and your future is a great center point to understanding the importance of IT. Without it, your business could have a massive gap right where you need it most. 

No matter your budget, strong IT support is a powerful tool. When you need it most, Pegasus Technologies has options to help your business no matter the size. For more information, contact us today

Erik Gudmundson
Erik Gudmundson
info@pegtec.com

Erik Gudmundson is an experienced leader in the field of IT service delivery. He is responsible for designing, proposing, implementing, and supporting cloud, on-premise, and hybrid IT solutions in computer-dependent business environments. As a trusted advisor to his clients, he communicates solutions and pitfalls/workarounds effectively.