Trends in ICT Budgets

 

Technology is creating the way for more success in our organisations. Technology budgets are expected to have increased for many organisations in 2018. Research indicates that 37% of companies will spend more on technology investment than they did in previous years. However, 10% of organisations will reduce their budget according to research. The same study indicates that 47% are expected to have their budgets at the same level as they were in 2017. Most of the companies that are increasing their technology budget are the lower mid-sized organizations that are aiming at the digital transformation. Moreover, this calls for technology teams to approach their jobs by adding value to a business perspective other than just having everything and everyone in an organisation online.


Any Time, Any Device, Anywhere.

Many organisations are concerned about the any time, any device, anywhere demands of their customers and how digital transformation will allow them to meets these demands. This shows that organizations are investing more and more on software, cloud services, and hardware to meet the demand for efficiency, improved experience as well as innovation. Companies are assigning 37% of their budgets to laptops and desktops, while 33% goes to security. In addition to this, these companies are allotting 23% to cloud backup, security solutions, as well as disaster and recovery.


Security

With cyber-attacks on the rise in terms of sophistication and number, many companies are focusing more on promoting security. Research shows that 53% of companies are taking security as of priority to their IT support budgets in 2018. These firms indicated that they are planning to increase their budgets in terms of security-related hardware and software with 10% going into security software and 7% allocated to security appliances according to research.


Hardware Trends

New hardware is of higher priority to technology budget just like security according to surveys. Most companies are planning to buy desktop computers as some of the hardware, especially in mid-sized and small organisations. In addition to this, most organisations are allocating more of their technology budgets to cloud services. The budgets allocated to cloud services have gone high from 17% in 2017 to 21% in 2018.
On the other hand, given the fact that companies are relying on IT support to drive competitive differentiation, innovation as well as digital transformation, some organisations are demonstrating a different case. Research indicates that about 37% of executives claim that their technology budgets go into management and maintenance tasks such as maintaining availability and uptime; fixes, applying upgrades, and patches; and make sure there is security instead of development of a new project or new initiatives such as cloud, virtualization or digital.


The gap between the new role of technology and the resources available for its support is undoubtedly a significant challenge to many organizations. Technology budgeting can be a burdening process because there is never enough money for all the priorities of an organisation as well as the day-to-day running of activities and managed services. However, ignoring technology or rushing to finish technology processes can be a costly mistake for any organisation. In addition to this, we must ensure that we allocate technology budgets where necessary. CIOs usually have the challenge of technology budget planning that will bring efficiency while bringing value for their organisations.


Depending on the business need, managed services as well as the company size, we must align corporate strategy and technology budget decisions with organisational goals to bring about business-wide value. We should work with budget owners to ensure a clear understanding of short and long-term business goals. In addition to this, it is essential that we collaborate with all other departments within an organisation such as human resources, sales, accounting and others when coming up with technology budget that will suit the company strategy. Moreover, we must ensure that the budget language is simple and clear to all. We must include a value of every item to assist in prioritising on how to spend on the budget for the year. Besides, it is essential that we don’t overlook planning for the future. We must be able to leave room for in our budget for unforeseen spending.


To learn more feel free to contact us here to discuss how better to distribute your ICT budget to align with your organisation’s strategic goals.
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