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  • WRITTEN BY Jorge Rojas POSTED ON November 5,2020

Setting a Budget for IT Services

Setting an IT budget can seem like an overwhelming task. It can be tempting to look at other businesses and copy what they do, but this rarely works. There is no one-size-fits-all budget.

Every business has unique needs and characteristics. To run these unique businesses efficiently requires a budget as unique as the business. Using the following steps can help you create a budget that’s just right for your organization.

Assess

The first step in setting an efficient and successful IT services budget is to assess your current situation.

  • What is working?
  • What is not working?
  • Do you have enough data?
  • How many locations do you have?
  • How many users do you have?
  • Do you need any hardware or software upgrades?
  • Do you need full-time managed IT services? Or do you have someone on staff and prefer co-managed services?

Ask others on each business level for input on any strengths and weaknesses. A thorough picture of your current IT situation is the best place to start building your budget.

Research

To get a realistic idea of what price range you can expect, you need to research what is available to you. What IT services businesses can provide what you need? What are their price ranges?

Also, research your competition. What services do they use? How much do they spend? Does it seem to be working for them, or can you spot weaknesses? You do not need to copy your competition, but their actions can help you make good choices when setting your IT budget.

Understand the Investment

Before determining your IT budget, you must consider the outcome. IT services bring many benefits, including less downtime due to IT issues, more security for your business, and data recovery.

Over time, these services can save businesses a lot of money. Paying for them is a wise investment in your present and future success. As you determine how much you are willing to pay for IT services, keep in mind the benefits they provide.

IT Services Exclusions

Typically, IT services only cover ongoing needs — not one time projects. If you need new equipment or additional services, you will likely receive a separate bill.

Additionally, any software subscriptions you have are usually not included. For instance, your IT services payment does not cover things like Office or accounting software. Be sure you leave space in the budget for these subscriptions.

Build Your Budget

Now is the time to set your budget. What is the maximum amount that you can put toward IT services? Does that amount cover the costs of all you want to accomplish? If not, you either need to adjust your goals or adjust your budget.

Typically, it’s best not to spend the full amount on monthly IT services alone. You never know what might come up that requires space in the budget. You should set some of your funds aside for future projects and surprises.

Your business is unique, so your budget needs to be unique, as well. It should line up with your needs and goals and be considered an investment. Understand that needs change, and you will need to be flexible when necessary.

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