A Concise Guide to IT Budgeting

Management and Finances
by Guest Columnist

By Patrick Gray

Every IT leader has the critical duty of budgeting on his or her plate, but the issue is far from simple. In fact, it could be even more difficult for IT, as it’s often viewed as a cost center by many executives. One tech writer is here to help with a concise guide for IT budgeting.

Patrick Gray writes, “IT budgeting can range from a painful annual process to the actualization of a carefully crafted IT strategy and road map. For an IT executive who is uncomfortable with numbers or loathe to endure the justification process that accompanies budgeting, it can be a difficult exercise, and the temptation can be to simply tweak last year’s budget, to succumb to arbitrary cuts.

“To help IT leaders not only endure the budgeting process, but to use it as a strategic tool to drive their priorities, we’ve assembled this guide. It should make budgeting less painful and help you understand how to use your budget as a planning and communication tool. As the saying goes, ‘You put your money where your mouth is,’ and your budget ultimately puts company resources behind the plans you’ve been articulating through the year.”

Gray continues, “In the worst case, an IT budget is a wish list of funding for every conceivable project and technology that’s expected to be reduced, trimmed, and rejected. In some companies, a reasonable budget is developed and then doubled or tripled to try to ‘game’ the budgeting process and garner what’s actually needed. Your approver, whether he or she is in IT or from the finance side, is probably on to this game, has a general idea of what’s appropriate, and will probably impose increasingly draconian cuts as you respond with increasingly ridiculous increases.”

Read the full article.

SHARE THIS ARTICLE

Tags:   

0 Comments

Share Your Comments on This Tip

If you have comments about this tip and want to post them on this page to share your thoughts with other IT Daily Advisor readers, simply enter your comments below. NOTE: Your name will appear on any comments posted.

Your email address will not be published. Required fields are marked *