7 things your organization should include in its IT budget
The importance companies should give to their IT assets has increased in the past few years. Nowadays, business success depends on how well organizations adopt technological innovations to boost productivity and cost-effectiveness. That is why having a well-structured budget dedicated to IT ensures your company’s tech spending is placed strategically.
To create this budget, one should know their organization’s needs and objectives, however, it is also important to know the general components an IT budget should have.
Top 7 categories your organization’s IT budget should have
According to Statista, in 2022, organizations in North America and Europe are allocating 26% of their budgets to cloud-based projects. Also, the average IT budget accounts for approximately 8% of a company’s annual revenue.
With that said, today we want to share with you the 7 categories that should compose your organization’s IT budget.
1. IT Staff
Whether it’s in-house or outsourced, you need to take into consideration that some scenarios will require augmenting your IT staff.
2. Software and Hardware
Including routine Software-as-a-Service (SaaS) subscriptions in your IT budget is crucial. Here you should also include hardware devices, like workstations and network devices.
Plan to include ongoing updates, patches, routine upkeep, and other essential support services, for both hardware and software.
Providing your team with the right resources will simplify tasks and redirect their efforts to high-yield activities.
3. IT Projects
Specialized IT projects for your IT infrastructure are the backbone of your entire business operations. You should include these one-time project investments in the budget.
4. Cybersecurity and Data Backups
According to the 2021 Cost of a Data Breach report, 2021 had the highest average cost of a data breach in 17 years. Network and data security are something that should be part of your IT budget.
5. Cloud Hosting Services
The cloud has made its way to the business world and has become the new normal. Cloud services and the costs that come with its implementation must be a part of your planned IT expenses.
6. Cyber Insurance
Since the start of the COVID-19 pandemic, organizations started including cyber insurance in their IT budget. This coverage is critical in case of data loss or exposure when a vendor is compromised.
When making investments in software, hardware, or cloud services, it is also important to consider employee training.
Most of the time organizations provide untapped resources that could help boost productivity, but employees end up not using them or spend more time than needed trying to figure them out. Team Venti offers admin and end-user training as part of our services.
Remember to track your tech spending and review it every year, or every time your organization’s objectives change.
Optimize and simplify your IT expenses with Team Venti
With the help of an IT managed services provider, like Team Venti, you can consolidate, optimize, and simplify your IT spending; regardless of the stage your organization stands in its IT journey. Let us help you keep up with the ever-changing modern business world while increasing productivity, cybersecurity, and competitiveness.
You can book a meeting with one of our experts today for a personalized, no-cost consultation, or fill out our contact form to get a customized quote.