Importance of an IT budget

Now we’ve had time to settle in to the New Year, many of us are implementing our resolutions, or at least trying to, whether it be to eat healthier, take more time for ourselves or be more conscious of how we spend our money. With the continuous increase in the cost of living, so many of us are creating our own budgets to try and manage our bills and spending. We know sticking to any budget can be hard… but we’re here to help!

An IT budget, similar to a personal budget, has many benefits to help your business pre-plan for expenditures and therefore reduce the likelihood of surprise or unplanned costs. We’ve started working with our clients to support them in creating and implementing realistic budgets… here’s what you need to know to get you started.

What is an IT budget?

Before we get into the core elements and benefits of an IT budget, it’s good to understand what this is. An IT budget is a financial plan set it place over a certain period of time, usually per financial year, which focusses on ongoing IT expenses, cloud services, hardware, software, project expenses, business objectives and much more.

What are the core elements of an IT budget?

Ongoing IT Expenses

This is the support and maintenance of your businesses IT infrastructure. These ongoing expenses include everything that ensures your IT environment is maintained, including:

• Helpdesk support
• Licenses
• Upgrades to Equipment
• Preventative maintenance
• Data Network services
• Device management

Cloud Services

All cloud services should be included in this section, including Private Cloud, Public Cloud and Hybrid Cloud models. If you are still working from on-premise servers, you may want to consider either fully or partially migrating to the cloud for increased security, scalability and business continuity.

Hardware

Hardware should include all equipment and any additional equipment that may be required to support your businesses future plans. Any cost of routine installations or implementation of large or significant hardware should also be included.

• PCs
• Laptops
• Desk Phones
• Mobile Phones
• Tablets
• Servers
• Firewalls
• Cabling
• Routers

Software

Similar to hardware, this section should include all your current software, any software installation and any future software that you are planning to purchase to support your business growth. Larger software implementation, such as digital transformation projects, should also be included here.

IT Projects

Future projects (happening within the budget period) should be detailed in this section, including expenses relating to specific projects.

• Project planning
• Project implementation
• Project schedule
• New hardware or software required to complete the project.

Disaster recovery/Back-up/Business Continuity

All costs associated with the business continuity plan, disaster and recovery plan should be included in this section. Any ongoing, one-off, or outsource costs should be outlined.

IT Department Staffing

Although the percentage of businesses outsourcing their IT is continuing to increase, some companies still want an internal IT manager or department to manage this in house, or with a combination of outsourced and in-house support. The following will need to be included here; salaries, bonuses, benefits, recruitment costs and training/education.

What are the benefits of an IT budget?

Budgeting for anything is highly beneficial. It helps you to clearly see upcoming costs, which will allow you to be as prepared as possible for hidden or unexpected expenditure. Benefits include:

• Assists in reaching your IT and business goals.
• Allows for mentoring, tracking, and analysing spend.
• Proactively planning spend will in turn save you money.
• Supports business security and continuity.

We can help!

It can feel daunting putting together an IT budget…

How do you know what hardware you may need this year?

How do you know what IT solutions are going to benefit your business the most?

At Office Tech Suite, we take a consultative approach to recommend and implement the best technologies to support your business ambitions. We can help you with:

• Auditing your current IT budget
• Comparing your budget to your competitors
• Taking inventory of existing equipment
• Identifying gaps in your cyber security
• Putting together an IT roadmap to support future business plans

Challenge us today! Let’s take the first step to future proofing your business, together.

Get in touch with the team on 0117 452 0033 or info@officetechsuite.co.uk