A company is a composite of different departments, and every department needs to consider diverse aspects when financial planning.
We know that the markets are witnessing a digital boom and IT departments have a lot bigger role to fill.
As a result, when IT budgeting and planning, there are several things to consider. From advance network changes to new cloud technology investments, and increased software training, CFOs and IT decision-makers have a harder job than ever before.
Also, companies are in the run to embrace better technology than their competitor. In this scenario, it may seem that the rising IT budgets are a result of businesses’ hunger to catch up with advanced technological trends.
However, more studies find that the primary reason for the escalating IT costs is inefficient project management and overloaded IT Support – generating zero to negative ROI from your IT department.
Below we have put together some points of convergence for your IT budgets and planning –
IT Budgeting and Planning should Comply with the Technology Landscape
You need to be extremely careful when putting forward your IT budget. Today’s technological landscape is constantly changing, and each fiscal year, you may want to conduct an audit for your IT infrastructure.
You should consider analyzing your network, hardware, and software to find if anything has gone obsolete. Also, it is always to evaluate what part of your IT infrastructure is the most efficient and if there are any upgrade opportunities.
Apart there are external costs like Software-as-a-service (SaaS) subscription fees, cloud hosting dues, network services and many more.
Rolling Frequent Forecasts for Technical Upgrades
Annual budgets and forecasting may not be enough in today’s IT landscape. You’ll find yourself reanalyzing constantly.
Consider forecasting for a quarter or a month instead of doing it on a yearly or 6-monthly basis. As you roll forecasts more frequently, you give more flexibility to your IT department, and they respond to providing the changes to the industry, helping you improve the decision-making process.
Plan More Strategically for Future
In today’s sooq, there are a wide variety of automation tools and software that can potentially help your business save lots of time and money. As soon as you consider any one of it, you’ll first to need to strategize and invest in the right tools to get a more significant return on investment. Also, these tools will require planning for your financial department. You can leverage an experienced IT consulting strategy from a managed IT service for better results.
Consult with the Other Departments in your Organization
The tasks of the IT department are interspersed with all the other departments. Different sectors of the business impact the processes and decisions taken for IT.
Hence, you need to consult with the decision-makers of every department when you are planning for an IT budget and see how the allocated budget will help in their future planning.
For instance, if the accounting department is planning to invest in the accounting software, so which department is paying for the purchase? Even if the money is coming from the accounting department, there will be additional costs of the IT setup – staff training, maintenance, vendor management etc.
Moreover, the IT department may find room for automation within the organization and suggest it to the particular department. This will raise the IT budget, and you’ll need to plan for it and set the motion for discussion.
You can organize a meeting for all the relevant parties and take their advice before drafting a budget or planning for the future.
Analyzing Data to Determine the Exact ROI from the IT Investments
One major part of IT Budgeting and Planning includes analyzing. You need to record right trends, record patterns and track performance of the current resources.
For example, you implemented a software solution last year that encouraged automation. But now you’ll have the evaluate its performance and check if it helped in saving money for the company. Track down the data for everyone to appraise its performance.
Approach the CEO as soon as you find that the software solution might save the right amount of money for the company.
Partner with a Managed IT to Free up your Time.
Consider working with a managed IT for accurate IT budgeting and planning as it can help you save tons of money and free up your time for other essential tasks as well. At Keeran Networks, we have the experience to help you reduce your IT expenditures and improve your organization’s relationship with technology.
We have the essential resources to operate direct and indirect costs and support your business goals. Keeran Networks is a complete IT solution provider that will allow you to increase your ROI from your technology infrastructure dramatically. Contact us today for an expert IT consultation and learn how we can help your business.