Effective budgeting for IT Managers

Alongside all the other responsibilities that fall on the shoulders of an IT manager or IT admin, planning and executing an IT budget is often an added responsibility. Worldwide IT spending is increasing year after year, and to make sure that businesses make the most of their budgets, they need to follow a solid budgeting strategy.

Worldwide IT spending was projected to be a total of $4.7 trillion in 2023, an increase of 4.3% from 2022 - Forecast by Gartner, 2023

To explore implementing a robust budgeting strategy, let us take a case study or example of Shyam, an IT manager at ABC Corp.

Shyam knows this daunting feeling of creating and managing an IT budget all too well. With a yearly influx of 20-30 new hires across all departments – Design, Marketing, Operations, and Tech, Shyam's biggest headache was figuring out how to equip everyone with what they need, without breaking the bank.

Visualising and categorising needs:

Shyam knew each department had their own specific needs. The design team required powerful machines to run demanding graphic design software, while the operations team needed basic workstations for simple tasks like data entry. Procuring and assigning the same generic laptop to everyone wouldn't work, and Shyam's budget wouldn't stretch that far anyway.

Shyam decided to take a strategic approach. He categorised IT asset requirements by department:

• Tech department: High-performance machines for developers and software engineers meant a higher cost per device.
• Design department: Machines with strong graphics capabilities were necessary for designers, but not quite as expensive as the tech team's needs.
• Operations and marketing department: Standard laptops for basic tasks like email and document creation could be more budget-friendly.

This departmental breakdown helped Shyam visualise the overall hardware needs and allocate resources more effectively.

Repair and refurbished devices:

Shyam knew there had to be a way to stretch the budget even further. He remembered that the IT storeroom had a section of old IT devices that were put out of use. Shyam, with the help of his technicians, devised a plan to refurbish and repurpose these devices for non-critical tasks in operations.

Although they were able to salvage and repair only around 3 laptops, that still resulted in having to purchase 3 fewer devices! Shyam had the idea to then look for a trusted and reputed vendor and decided to procure a few more refurbished laptops (with relevant warranties) that would cover the basic needs of the operations and marketing teams.

Shyam wasn't just equipping new hires with reliable devices, he was also extending the lifespan of valuable IT assets, saving the company a significant chunk of money.

Implementing ITAM software:

Shyam's next move had a big impact on the company's total IT spending. He implemented a robust IT asset management (ITAM) software solution into the organisation's IT process. This wasn't just any investment, it was a cost-saving and budget-balancing secret weapon for Shyam and ABC Corp. With the integration of this powerful tool, Shyam and his team were able to benefit in multiple ways:

• Tracking all IT assets: No more missing laptops or forgotten phones – everything was closely tracked in real-time, allowing Shyam to identify underutilised assets and optimise resource allocation to make the most of his budget.
  
  
• Analysing IT spending: The ITAM tool provided clear insights into hardware costs and relevant performance, helping Shyam make informed decisions when procuring new IT assets.
  
  
• Standardised specifications: With the help of ITAM tools, Shyam could view and sort the IT assets based on configurations and specifications, allowing him to see and sort by the needs of each department.
  
  By standardising hardware configurations based on departmental needs (wherever possible), Shyam streamlined the procurement process, reduced overall device costs through bulk purchasing, and simplified ongoing IT maintenance.
  
  
• Reduced overall costs: In terms of the overall IT workflow, the ITAM software helped save costs in so many different ways: reducing data safety concerns, ensuring software license compliance, consistent updating of software, and maintenance of devices – all of this, in turn, helped save a lot of money for ABC Corp.
  After discussions with upper management and the CFO, Shyam was delighted to hear that savings from these other sources could be re-invested into the IT budget, allowing for more freedom and higher budget for IT spending.

The ITAM software didn't just save money, but time too. Automated tasks freed up Shyam and his team, allowing them to focus on more strategic and growth-focused initiatives. The investment in the ITAM software paid off, saving ABC Corp around 15% of its total IT budget.

IT asset disposition considerations:

Shyam then factored in the cost of a responsible disposal process. This included aspects such as secure data erasure and environmentally friendly recycling practices. Planning for disposal right from the start ensured a smooth (and compliant) transition when the time came.

Shyam also considered what to do with the rest of the old IT devices from the storeroom that they couldn't salvage for reuse. He found a reliable vendor that purchased the company's dead devices for a reasonable price. (Check out Assetze's services, we buy your dead and old devices at attractive prices)

Shyam's story is a testament to the power of effective ITAM and following a good budgeting plan. By strategically categorising needs, making use of old devices and refurbished options, implementing ITAM software, and planning ahead for responsible disposal, Shyam streamlined his IT budgeting process. Ultimately, cutting down on total budget spending, and making the most out of it in the process.

Learn more about the role ITAM tools can play in making your IT infrastructure secure, smooth, cost-optimised, and easy to manage.