Improve Your IT Budget Forecasting

Improve Your IT budget Forecasting

As the year comes to a close, you have to write the IT budget and spending benchmarks. You must understand the current IT infrastructure and forecast technology needs. This article shares three key areas to improve forecasting and maybe save budget too.

#1 Unexpected IT expenses

First, it helps to identify where you are blowing your IT budget. Often IT budget inaccuracies can be traced back to unexpected tech expenses. Repairs, replacements, and unanticipated upgrades can all throw your budget out of whack. Unfortunately, emergency repairs and last-minute technology improvements are the most costly.

But without a crystal ball, you can't predict what's going to happen, right? Still, you can make a plan that allows you to avoid wasting money on the break-fix model. Partnering with a managed service provider (MSP), you will typically pay a set monthly fee. Then, if something does go wrong, you have IT experts at the ready to address the issue.

Plus, a good MSP will work to determine the expected life cycles of your tech assets. That way, you can anticipate hardware or software upgrades and budget accordingly. Further, your MSP should work proactively to prevent unexpected downtime. They can help protect you from cyberattacks and keep software and hardware updated and patched.

#2 Bloated IT infrastructure

Overlapping and wasted resources are another big IT budget drain. You could be paying for many devices that do the same thing, or you may be continuing to license software that your team no longer uses. Or it may be software that everyone uses, and you could be getting a much better deal. You might also be paying for tech you haven't upgraded, so you aren't getting the full return on your investment.

An MSP can help identify these kinds of issues. Bringing in an IT expert provides an objective view of your infrastructure. They can suggest performance improvements and streamline processes. They may also suggest subscriptions or other packages that can help you save funds.

#3 IT and business misalignment

The plan is always to build a budget for an IT strategy that helps achieve business goals. Yep, doing so depends on your tech know-how and good communication.

Further, tech-business alignment has grown more difficult as infrastructure has changed, plus, the workforce is now more distributed. The business could have on-premises technology as well as cloud-based software. Employees could be bringing in their own devices and/or working remotely. As a result, business tech needs to be doing more. Plus, it needs to keep up with rapid evolution and cybersecurity threats.

Yet investing in IT-business alignment improves budgets, and benefits workers and customers. Potential advantages include:

  • reduced digital friction;
  • improved user experience;
  • greater customer engagement;
  • cutting costs;
  • improving productivity;
  • gaining visibility of business processes;
  • faster delivery times and speed to market;
  • growing your competitive advantage;
  • driving innovation.

Work with an MSP to bridge business acumen and IT expertise. Then, you can better calculate the financial impacts (costs and ROIs) of your IT plan.

Need help understanding IT budget pitfalls and spending benchmarks? We can help plan for tech spending supporting your business objectives going forward. Contact us at 903-347-0073.

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