IT Budget Planning: 6 Worthwhile Ways to Invest

As information technology keeps advancing, creating an IT budget plan is becoming both increasingly more complex and more vital than before. The budget planning process provides a clear list of priorities for the IT department as well as the rest of the company. With this in mind, it’s not enough to merely rework parts of the previous year’s budget. Each new budget must cover your department’s new needs, no matter how insignificant.

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Creating Your Technology Budget

A well-prepared IT budget allows leaders to allocate resources to the right IT programs. These could be staffing expenses, hardware leases, or other recurring expenses. Here are several other costs to include in your IT budget plan. 

  1. Hardware
  2. Software
  3. IT staff
  4. Maintenance & repairs
  5. IT projects
  6. Emergency funds

1) Hardware

This expenditure encompasses all the IT equipment and other fixed assets used in an organization. They include servers, support contracts, network infrastructure, and client computing resources like laptops. IT leaders also have to budget for installation costs.

2) Software

This category of expenses entails subscriptions, support contracts, training programs, and licenses. They are a set price over a specific period. Your software budget may change if a subscription plan changes or you switch to different programs.

3) IT Staff

IT staffing is an obviously important recurring expense in an organization. As technology advances, IT leaders should engage team members in regular training activities. You’ll also need to budget for employees’ regular salaries and any additional IT work you may need them to do.

4) Maintenance & Repairs

This expenditure category is associated with the continuous use and maintenance of IT hardware and software assets. They require regular maintenance and repair services, which IT leaders should also include in the IT budget planning process.

5) IT Projects

Project expenditures are usually tied to discrete efforts since they are the most flexible of an IT budget. They can get pushed back or accelerated depending on the cash flow in an organization. Some of them include consulting and administrative expenses. 

6) Emergency Funds

Any organization should set aside emergency funds when creating an IT budget. The funds should cover all unexpected expenses that might arise at any time. Clients may need to be compensated for a data breach, for instance, or a last-minute repair may be necessary. Always be prepared for the worst-case scenario.

Stay on Top of the Tech Budget

With a budget, you’ll find it easy to prioritize your IT programs and validate if your monetary investment matches your strategic plan and priorities. It acts like a roadmap that gives direction and insights into your IT department and the funding requirements.

Contact us to discover more about budgeting and project management.