Information technology or IT is the backbone of most business functions, which is why investing in technology plays a huge role in every company’s business strategy. Determining your IT budget, especially with the industry climate that we have right now, can prove to be particularly difficult. According to Gartner Inc., worldwide IT spending is expected to reach $3.4 trillion in 2020. This forecast saw an 8% decline from the 2019 worldwide spending, which is caused by the global recession brought about by the coronavirus pandemic. Cloud-services saw huge growth since many businesses were spurred to move to the cloud due to the remote working setup. The software segment also performed better than expected and continued to grow since many enterprises deemed this as “mission-critical” in their spending initiatives.
With the technological advancements and company changes that your business experiences every year, allocating your IT budget requires careful planning and thought. In this article, we’ll provide some quick tips on how you can maximize your company’s IT budget.
Benefits of Investing in Technology
Technological investments are integral in helping you scale your business. Here are the reasons why:
Competitive advantage
Whether it’s enhancing your company’s productivity or improving customer engagements, there’s no denying that IT is now the heart of every business. Investing in IT wisely can give your business a competitive advantage and help you to stay one step ahead of everyone else in the industry.
Business agility
In a fast-moving world, the ability to go with the flow with consistent changing business needs will help your company stay on top of the game. Updated technology can help you streamline your processes, from having CRM systems to getting cloud services, to having the latest software to help you manage your daily operations.
Employee morale
The better your IT environment and equipment are, the higher your employee morale gets. Think of it this way: no one wants to use a 10-year old laptop when they know they can use a brand new one with the latest operating system.
Security
Cybersecurity is incredibly important. Investing in IT can help you to mitigate risks by updating your security landscape regularly.
Things to include in your IT budget
Allocating funds for your IT budget is more than just determining the numbers. It’s also about being strategic in where to spend your funds. Now that it’s time to determine your budget for the coming year again, here are some key components that you must include in your IT budget.
Moving to the cloud
In a study done by CRN, cloud infrastructure exceeded data center spending in 2019. This 2020, cloud infrastructure spending accelerated even more since most businesses moved their data centers to the cloud to create more flexible work-from-home environments. Cloud services provide agility and easy scalability which can also enhance productivity for your employees. Consider optimizing your expenses for cloud infrastructure and services for 2021.
Internet connectivity enhancements
If your company has also shifted to remote working conditions, consider having a budget allocation for your employees’ internet connectivity. Home internet speed often pales in comparison to office internet speed and this also varies per location. Slow connectivity can easily hamper one’s work, especially for those who live in rural areas. Have the initiative to provide financial assistance for the upgraded service plans of your employees.
Assessing your current infrastructure
Are your equipment all up to date? Like slow internet connectivity, slow or aging equipment can cause work disruption. Outdated equipment can also cause IT security threats if your employee’s computer is no longer compatible with the latest security patches of their operating system.
Safeguarding your IT security
Upgrade your IT security by doubling up your firewalls and regularly checking the devices connected to your network. Make sure that you always have a critical disaster recovery plan. In the case of a security breach, your business should have backup and data recovery applications.
Conclusion
Proper IT budgeting can help your business to propel forward. The global pandemic has massively changed not only our corporate setup but also many businesses’ priorities. When doing your IT budget, remember to prioritize the remote tools that can aid in your business’ digital transformation and will help your company streamline its current processes.
