If you’re the IT manager of your company, or you’re in charge of deciding how the company’s IT budget should be divided, you’ll face a challenging decision. The importance of the IT department to any company is undeniable. However, within that budget, the division of the allotted funds will need to be decided. According to Revology, your priorities for determining how to divide IT funds should align with the overall business plan of your company.

Spending Priorities of the IT Department

New developments in the technology fields have provided new capabilities for IT departments. Opinions are often divided about whether a company will invest in these technologies. According to Techvera, a recent benchmarking study in 2020/2021 revealed that Cloud applications and Cloud infrastructure received the highest priorities when the division of the budget was decided. This priority appears to have been partially inspired by so many employees needing to work off-site yet still requiring ongoing connection to the company’s central computer programs.

Cloud Computing and Its Requirements

With the increased importance of cloud computing and the realization of its importance to business operations, management needs to recognize what is required to develop the company’s cloud infrastructure properly. One of the most influential decisions involves choosing the right cloud platform. Once you select the platform, your IT department can begin migration of the company’s data.

Expenses Related to Website Development

When a potential client goes online to search for a company, their first impression of that company is frequently found on the company’s website. The importance of the website is evident by statistics showing that between 40 and 50% of a company’s budget is typically directed toward creating its website. Much of the cost of your website will depend on who will be designing and implementing the website. Large companies may have the opportunity to employ someone for their IT department who is an in-house web designer and a website manager, and those companies will save a considerable amount of money.

Increasing Importance of Cybersecurity

As technology has become indispensable in today’s business world, it’s unfortunate to admit that cyber crimes have increased – and are now causing businesses to lose customers, profits, and reputations. Therefore, today’s businesses need to become proactive about finding the best ways to protect their data to safeguard their companies. Most companies use cybersecurity software, and the costs of these programs vary widely. Another considerable investment must be made in employee training and ongoing monitoring.

Incidental Expenses Can Add Up

With the significant investments made in website development and software programs, it may be easy for managers to neglect what they may think of as incidentals unintentionally. For example, according to First Research, paper costs can add up to 1/4 of the total revenue – making it the biggest of the production costs. It’s just as essential to be aware of the expenses for paper, printer ink, and other office supplies as it is to budget for items with larger price tags.

Environmental Concerns that Ensure IT Survival

As essential as it is to invest in the newest computers and software, the strategic location of your office computer hub is just as important. Office temperature can influence the operation of computers, and temperature regulation can depend on the integrity of the office windows. According to the Attachments Energy Rating Council (AERC), old window frames can incur an extra 25% of annual heating and cooling costs. The same source reports that window treatments can significantly decrease those costs.

Allocation of the resources your IT department has been granted can be a key part of your company’s success. By using strategic planning and setting your priorities, you can direct your funds toward success. Part of that strategy will require you to consider using some of the department’s allocated funds in ways you may not have previously considered.