HOW MUCH MONEY WILL YOUR BUSINESS NEED FOR TECH?

Austin, Texas—As a new year begins, the companies’ needs and requirements for their survival in the business environment should be reviewed. This renovation not only needs an action plan but a budget to execute it. Technology has perhaps become a crucial aspect to invest in within a company because it facilitates productivity and profitability. The Information Technology (IT) Budget is a source that will help the organization determine how to allocate funds in their technology.

WHAT IS IT BUDGET?

An IT budget is an official plan commonly developed by the Chief Information Officer (CIO) to determine the present and future funds assigned for technology within the company. This IT capital plan includes budgeting for new and replacement hardware, software, apps, cloud services, web hosting, maintenance, cybersecurity, telecommunications, audiovisual equipment, outsourcing, consulting, travel, and IT staff.

The IT budget model should upgrade every year considering the new company needs and technological advancements. Business owners must be aware of their organization’s industry (banking, security firm, construction) to not spend too much revenue on IT, or not spend enough.

STATISTICS

According to the Spiceworks’ annual report on IT budgets and tech trends, “The 2019 State of IT”, businesses revenue across North America and Europe is on the rise and IT budget are expected to grow. Some other findings for 2019 include:

  • 89% of companies expect to grow or remain levels of IT budget.
  • The biggest driver of IT budget is to upgrade outdated IT infrastructure.
  • Small businesses increase hardware budget, large companies increase cloud budget.

Regarding average revenue invested base on company size, the CIO Magazine reported that:

  • Small companies spend 6.9% of revenue on IT, up to $50 million.
  • Mid-size companies spend 4.1% of revenue on IT, between $50 million- $2 billion.
  • Large companies spend 3.2% of revenue on IT, over $2 billion.

BENEFITS OF IT BUDGET

Companies nowadays have at least some sort of technology working to produce, whether it be a computer or equipment. Knowing the benefits an updated IT budget has is important for owners and staff.

  1. Improve business agility
  2. Mitigate cybersecurity risks
  3. Improve business processes
  4. Reduce cost
  5. Maximize profits and minimize waste
  6. Retain talent

The IT is a crucial aspect of nearly all companies. It offers a wide range of benefits, increases efficiency, and improve performance. Regardless of the size, all companies should invest time in developing an adequate IT budget. It not only will save the company money but can avoid a long list of issues that dismissing the IT budget can bring.

At Harold Technology Group, we are experts in performing Information Technology Consulting and Audits. Contact us by email info@haroldtechnology.com, call as at (512)-910-2974.

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