IT spend to budget, audit, planning, recycling, community
by Andy Flagg, Publication Date: Friday, February 26, 2021
View Count: 45, Keywords: IT Budget, Spend Percentage to Revenue, Q1 2021, Hashtags: #ITBudget #SpendPercentagetoRevenue #Q12021
Well, for 2021, we are pretty lean on our IT budget spend. I was looking at the budget percentages of IT to revenue as a factor moving forward, and it was like 2.4% to 5% depending on size of organization.
For the most part, 2.8% of revenue for IT budget was about nominal. The key was infrastructure revitalization and renewal of necessary services to maintain productivity and growth, sustainability of cyber and information security was the largest increase just to thwart potential threats.
Remember, you don't have to spend money allocated in a budget. A budget is a plan, and resources can be moved around to meet changing needs. Some believe capital (OPEX vs CAPEX) must be used or lost. Not necessarily. Corporate vision and goals might change and resources aligned to them might shift and move accordingly. Its easy to get with leadership and accounting and make suggested changes and proposals.
One thing I forgot to mention on the original post was the "technology audit". This is something that is done at remote offices from time to time to ensure proper handling of assets and disposition. I can't tell you how many time we end up not reporting to finance the disposition and write-down write-off and removal of high value assets off the balance sheet and insurance. Just a tip for the pros, I guess. Sometimes it just feels great to clean house and remove technology clutter. Know your local electronic recycling companies who do this for free for your organization.
There is a good quote in this article:
"We believe it's important to change the commonly-held view that business technology is a necessary evil. Technology is an investment into the operations and flow of your organization, rather than a cost of doing business. This is especially true in the modern age where most companies rely on their computers, phones, website, software, and other devices to function properly and drive success.
With proper IT budgeting, your company's infrastructure can be designed and used in a way that enhances your ability to respond to varying changes in the competitive business environment and supports your company's goals."
I agree. Whatever you do, don't lose your grip on your information security and business productivity.
Also, consider working with your community and non-profit groups to help them with your equipment that you plan to properly recycle or reuse for senior centers, kids, and more; just properly dispose of and out process your equipment to those who could benefit from it. Don't waste a good opportunity for community outreach.
more to come...
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