BUDGETING FOR IT

One of the biggest challenges organizations and businesses face is the dreaded process of budgeting. This time of year is front and center because most companies in the US follow the calendar year as their fiscal year. The interdepartmental arm-wrestling for financial consideration is typically won when there is an accurate forecast annually, and the frequency of unexpected expenses are minimal.

Many small and mid-sized businesses fail to budget for IT appropriately. Often, their budget is pulled from the previous year’s ledger with little consideration given to business intelligence needs, transformation and efficient operations, managed services and special projects or areas that need IT attention.

It is easier to budget for IT expenses than you think. There are two (2) main categories with a number of sub-categories to think through when you are budgeting:

  1. Maintenance of IT Network and Services
    1. Internal IT Staff
    2. External IT Staff (outsourced help)
    3. Support Contracts
    4. Hardware Warranty Renewals
    5. Software Licensing/Support Renewals
    6. Cloud Hosting Services
    7. Software Subscriptions
    8. Security Services (a must)
  2. Projects
    1. Consulting Needs (business intelligence, transformation and efficient operations, managed services and special projects)
    2. Hardware Considerations
      1. Age
      2. Performance and User Experience
      3. End of Life and Support/Warranty Discontinuance
    3. Software Considerations
      1. Performance and User Experience
      2. Security Concerns within Current Software Version
      3. End of Life and Support/Maintenance Discontinuance

For most companies, budgeting is far easier after considering these IT needs. Projects are easier to forecast when you maintain documentation of all hardware and software, along with purchase dates and maintenance records. Any device nearing five (5) years of age is worth reviewing to consider a change.

If you need help with your budget, call River Run Computers at 414-278-7474 to confirm that you have all your needs covered.  Budgeting and Budget Review are part of our Application Services Group offerings.

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