Why You Need to Consider Your IT Budget and Spending Analysis Now

IMG_1056It's time to take a look at your IT budgeting for the next year. Worldwide IT spending has seen an increase every year since 2005, with a total of $3.507 billion projected to be spent in the United States alone throughout 2015. Gartner anticipates a 2.4% growth in IT spending through 2015, and IT budgets should be expected to compensate for the projected growth of the coming year. With the end of the year soon upon us, it is important that businesses take a look at their own IT budgets now and begin planning for 2016. In this post, we will take a look at some of the important things that your business needs to consider when developing an IT budget.

Looking to Your Company's Inventory and Practices

Begin by identifying your company's needs and reviewing your IT protocols. Ask questions such as:

  • Will you need to refresh your IT inventory in the coming year?
  • Are you going to switch from a premise to a cloud based infrastructure?
  • Do you have leased software or solutions that are coming up to term?
  • Will you need to investigate and procure new best-in-class solutions?
  • How much are you utilizing by way of resources, such as data consumption?

By looking at your true costs during the prior year, you will be able to estimate your costs for the future. Take an especially conscientious look at any areas in which you ran over budget in the prior year; this may reveal some insufficiencies within your prior budget allocations.

Determining Your Company's Growth and Cushion

Does your company plan on expanding in the upcoming year? By how much? New employees, departments, and offices will all affect your projected spending. Not only will you need to requisition new equipment and devices, but you will also need to consider an increased need for resources and administrative hours. In addition to factoring in company growth, you also need a certain amount of "cushion" for any unanticipated expenses and issues. Approximately 20% of your budget should be added on the site to account for any unforeseen expenses.

Requirements and Future Technology Needs

Your budget should always be able to account for the IT requirements and standards of the company moving forward. The world of IT is exceptionally fast-paced, and IT requirements change from year to year. As an example, though IT service costs have gone up over 2015, the cost of communication services have plummeted sharply -- mostly owing to a standards transition towards VoIP protocols over traditional telecommunications solutions. Your total IT spending budget will need to have resource allocations based on the future needs and standards of the company, rather than the current ones.

If you need to find ways to reduce your budget costs -- or simply work effectively inside of your existing budget -- contact CWPS today for a free consultation. CWPS can help businesses find ways to stretch their budgeting dollar and prepare for the coming year.