Creating an IT budget has become more challenging because many workplaces are not what they used to be. Nowadays, business owners and IT managers must account for devices for office and remote staff, user preferences and training, and the optimal allocation of funds for every IT expense. This is aligned with Gartner’s prediction that workplace IT spending will increase in 2021, accounting for expenditure on things like data systems, devices, and enterprise software.
Whether you’re managing and determining your own IT needs or working with an IT consulting company, make sure you include the following when creating an IT budget.
Software
There are plenty of time-consuming tasks that take up employees’ time. This is why it’s best to allocate a budget for software programs that will make your staff’s lives easier and make your company more competitive.
Automation software is particularly useful as it can streamline tedious tasks such as setting appointments, tracking inventory, posting on social media, and the like. For instance, posting content on social media can be automated using posting and scheduling tools like Hootsuite and Tweetdeck. Using these programs allows people to work on activities that require critical thinking, greater creativity, and deeper focus.
Hardware
Keeping your old and sluggish PCs with outdated software, 10-year old servers that no longer receive support, and obsolete network devices often leads to costly and unexpected IT expenses. To avoid that, make room for hardware in your IT budget.
New PCs typically come with comprehensive after-sales support and feature the latest operating system upgrades. Modern routers and network devices have improved Wi-Fi capabilities. The latest gadgets have better Bluetooth connectivity. Simply put, investing in new hardware lets users work faster and better, and saves the company more money in the long run.
But before investing in new devices, carefully assess which of your existing hardware needs to be replaced and which ones should be kept. Make sure you’re purchasing equipment that are compatible with your IT infrastructure, have decent warranty plans, and contain the features you need.
Maintenance and support
You should also assign sufficient funding for software and hardware maintenance and support because even the most advanced tech tools can malfunction. Consistent maintenance, which encompasses regular software updates and patches, reduces issues and keeps overall technology costs down.
For SMBs with no IT support team, a cost-efficient alternative is to outsource technology maintenance to a managed IT services provider (MSP). A large majority of MSPs offer proactive maintenance and support at fixed prices charged on a predictable, monthly basis.
IT Security
Obsolete and inadequate network and data security equipment and settings are why cyberattacks succeed. What’s more painful for businesses is that launching cyber scams and selling stolen data on the dark web is substantially cheaper than mitigating them which costs millions.
You don’t have to spend a fortune on cybersecurity, but you must allocate a considerable amount for it as well. Make sure to include the following in your IT security budget:
- A VPN-capable firewall to protect all business communications from brute-force attacks and intrusion attempts, and to block users from accessing harmful websites
- Malware scanners to proactively detect malware across your network
- Password security keys to protect users from phishing attacks
- Cloud encryption software to protect data in storage and in transit against unauthorized users
- Office security systems, including security cameras, alarm systems, access controls, and sensors
Employee training
If you’re spending on new technology, it’s worth spending on technology users too. Allocate a budget for employee training so they can maximize all the IT tools at their disposal.
A workforce that undergoes training tends to be more productive and happier, and therefore more likely to stay in the company. Note that a high employee turnover is costly, too. And since most data breaches are caused by human error, keeping staff security-trained is a crucial first step to preventing them from falling prey to numerous scams.
A carefully planned IT budget is key to implementing IT projects that keep every business department functional. Our eBook, A Fundamental IT Checklist For Small Businesses, offers a more in-depth take on investing in IT. Download this FREE eBook today.
