Before you know it, Q4 will be here, and 2024 planning will be in full swing. While it’s still several months away, businesses should begin IT budget planning for the next calendar year as early as possible. You need to invest the time to determine your IT goals for the year ahead and if you have the right resources and infrastructure in place to make them possible.
You might want to invest in cloud migration, new cybersecurity services, or your overall IT structure. When planning your IT budget for 2024, it’s important to limit risk while maximizing the upside and choosing technology that will help future-proof your business for years to come. Here are a few expert tips for prioritizing your budget appropriately.
1. Categorize Your Costs and Set a Budget Calendar
At the most basic level, you need to know where your money is going. Categorize your expenses around IT infrastructure, new initiatives, recurring costs, salary, and appreciable versus non-depreciable assets. Also, an IT budget calendar visually shows when expenses will occur, allowing for better cash forecasting.
2. Prioritize Security and Disaster Recovery
Cybersecurity and disaster recovery is the last place that you want to pinch pennies in your IT budget. According to the Ponemon Institute, 66% of businesses have experienced a cyberattack in the past 12 months. It’s critical to be realistically prepared and dedicate enough resources to protecting your business from future attacks. Take a look at our quick and free risk calculator to ensure your company’s investment in IT security is in line with your actual needs.
3. Budget for Long-Term Work From Home
Remote work continues to be a priority for both employees and organizations, so ensuring your investing in the right technology to support this trend is vital. Having a single cloud communications solution could help you streamline costs while providing a better solution for employee communication. Plus, thinking through security needs to support remote work is equally important. Solutions like endpoint security and employee security awareness training are more important than ever.
4. Closely Monitor Your Recurring Costs
After you’ve investigated all the vendors, platforms, and applications you’re using in 2023, take a closer look at the technology and those recurring costs. Do you have redundant applications? Are employees really using a specific software? The average company wastes $17 million a year on unused SaaS licenses, so don’t let recurring costs simply add up. Evaluate your technology options and see if there aren’t better options available that can help eliminate redundancy and drive better adoption from employees.
5. Track New Hire Costs by Department
A new IT hire is not just a salary expensive. Calculate and track the average amount of money for a new hire’s computer and equipment, benefits, SaaS licenses, and more to get a true picture of how much a new full-time employee might cost. You might discover it’s easier to outsource a specialized role to an expert managed services provider.
6. Have an Emergency Budget in Place
Make sure your IT budget has enough room for unplanned activities. This might be for an unplanned hire, disaster incident, security breach, or mission-critical upgrade. You don’t want to become caught off guard without money to take care of it.
Explore Outsourcing IT in 2024
One of the best ways to keep your IT budget in check is through managed services. 68% of businesses outsource IT work, saving potentially millions of dollars a year. Working with an expert managed services provider is often more cost-effective and flexible than managing all your IT in-house. Calculate your company’s specific return on investment if you were to use IT managed services.
TPx is a trusted managed IT services provider offering business internet, networking, cybersecurity, and cloud communications solutions. We can help you save money on your budget by providing quality yet cost-effective IT services. Share your existing IT bill with us today and we will show you how we can help lower your IT costs. Contact TPx to learn how we can help.