How to Plan Your IT Budget for 2021

IT budget planning

How to Plan Your IT Budget for 2021

Many companies faced financial difficulties in 2020 which shook up their budget plans for the year. In 2021, businesses are working to plan an effective IT budget that meets their projected needs while remaining flexible. 

With vaccines rolling out across the country and a hope for a better business market, organizations are preparing for many outcomes. There are uncertainties about how successful businesses will be this year and the timing of changes that can make budget planning hard. 

Technology is a critical part of business efficiency, and an IT budget is essential to get the most out of your technology.

Categories in an IT Budget

When looking into 2021, it’s important to break down your IT costs into categories. Here’s the basics of what goes into any IT budget:

Ongoing costs

Ongoing costs include every basic and predictable cost that a business needs to run. These are things like hardware costs for replacement, updates, and maintenance of company issued devices. Servers, routers, and network costs are also included. Any phone systems also fall into this category.

Software is also an ongoing cost. Software programs, the cost of subscriptions, access for all staff, and required licenses are all regular expenses that you can plan on. Comprehensive cybersecurity protection for your systems is another essential ongoing cost.

Project Costs

Project costs are for the additional costs required for specific planned projects for the year. These can include any extra or specialized hardware, software, or other systems required for the project. Installation and training costs for employees to be able to use new equipment and programs are also included.

In addition, many companies will require additional IT support to manage the extra resources in a project. Co-managed IT is a great solution to supplement existing IT staff with needed outside help.

Contingency

Contingency costs are those expenses that are unexpected. Having a budget for contingency costs is an essential part of a business continuity plan. A sufficient contingency budget can help your business to be flexible and adaptable with unplanned problems. 

There are several reasons why this is important. A contingency budget will come in handy with security breaches. Natural disasters or other problems can damage technology. The pandemic is an example of an unplanned event that added additional IT expenses for many, like those who had to provide equipment and IT support for remote work options.

How to Save on Your IT Budget in 2021

Beyond careful planning in the IT budget categories, there are other things you can do to save. Getting the support of a qualified IT provider is important for their expert consultation. They can help you find areas to reduce spending within your standard budget. They can also make recommendations for new options that can benefit your business.

One technology addition that is cost-effective and beneficial is cloud computing. Cloud IT services offer greater storage for data, more accessibility for remote work, and improved collaboration with hosted workflow. 

The CompuLab can help your South Florida business reduce costs and maximize your output through effective IT solutions. Contact us today to get started. 

TheCompuLab

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