Factors to Consider When Creating an IT Budget
Are you looking for a way to make a proper IT budget? IT-related budgeting can be a headache. Especially since the budget is used not only to manage money and resources but also as a tool to execute the company’s roadmap and strategy. Here, we listed 5 factors to consider that will help you make a proper budget.
What Is Budgeting for IT and Why Does It Matter?
To put it simply, budgeting is all about the monetary resources allocation to certain programs like IT programs for example. The IT programs include something like stuff expenses, hardware leases to other expenses to keep a project or initiative going. It matters for business as budgeting keeps the IT department alive and helps to identify and executes the business’ initiatives.
1. Past Performance
The first is to identify the past performance of the department. Is the performance good based on the existing trends? If the performance is good, reducing the spending is possible. If it is not, the spending may need to be increased.
2. Current Infrastructure
The current infrastructure affects the IT budget. A business that has a small infrastructure usually prioritizes in expanding and upgrading to improve efficiencies. A business that has a well-developed and large infrastructure, however, usually prioritizes in patching, upkeep, and maintenance.
3. The Size and Maturity of the Business
The size and maturity of the business affect the budget as well. Here’s the rule of thumb: the larger the business is, the more money it should put aside for unexpected situations. A young business should put its focus on building and expanding the IT department, while an older one should put its focus on maintaining and improving efficiencies.
4. The Growth of the Business
A business must put its foremost focus on its growth. Without growth, the business won’t be able to improve the IT department. The IT department should be kept lean but still have a small wiggle room so that it will not face bottlenecks.
5. Online Templates
There are many online templates available. You can just download and start inputting the details. The downside is that you still have to make adjustments so it suits your situation.
The above are 5 factors to consider when you are creating an IT budget. When you put these 5 factors in mind, creating the budget wouldn’t be as difficult. It should also help you to put things in perspective. There are many examples online available for free as well, in case you need an example or two to get started.