The ever-changing technology can make it incredibly difficult to manage an IT budget successfully. We’ve compiled some simple IT budget management tips to make it a little bit easier for your company.
How to Set and Manage an IT Budget
1. Review Previous IT Budgets and Spending
Your budget needs to start somewhere, and taking a critical look at previous IT budgets and spending is a great place to begin. For example, did you introduce new cyber security software that reduced data breaches? Did you upgrade machines to improve productivity? Did you switch internet providers and realize that the new provider performed worse than your initial one?
An honest assessment of what works and what doesn’t work provides you with the insights you need to manage an IT budget optimally.
2. Discuss Business Priorities
Talk with both staff and executives at your company about IT initiatives. Ask what they thought of past IT infrastructure, including hardware and software. These discussions will often reveal valuable information regarding the way other people in your company understand IT and how it can be improved.
3. Align IT Priorities and Business Priorities
Based on your own understanding of your company as well as your conversations with employees and executives, research and compile solutions that can help your company achieve its goals.
This will include existing IT solutions, as well as new, more modern solutions. Rather than navigating the complex nuances of IT upgrades on your own, consider enlisting the help of a third-party project manager.
4. Call Upon Accounting
It’s often wise to ask for a bit of help from your accounting department. They’re likely experts in budget management, so soliciting their expertise as you prepare to manage an IT budget can be extremely helpful in terms of projecting costs.
5. Track All Costs
After a budget has been determined, be sure to track all costs versus their projections. You might find that you’re able to save money on certain aspects of your IT strategy, especially if you’re able to work with a company that has valuable relationships with leading IT vendors.
Additionally, it will help you assess your budget and spending when the time comes in the future.
The way you actually set and manage an IT budget might differ a bit based on your own company’s economic health and goals, but these tips should serve as a baseline.