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6 Critical Items You Must Know About the IT Budget

6 Critical Items You Must
Know About the IT Budget

May 26, 2020 Steven Middeldorp

Managing IT like a business is much easier said than done, however, it remains a top priority for leaders in both IT and Shared Services. For your CIO, the business alignment with IT service remains a primary concern.

Every internal department influences the cost of IT in different ways that may or may not be apparent to the organisation as a whole.

In order to optimise your costs and align your IT budget with your business objectives, you need to account for these six critical activities:

 

1. Know exactly what you are spending

Before you can make strategic changes to your budget, you need to know exactly what you are spending. Compare your operating, capital, and headcount budget with your actual spend.

 

2. Pinpoint what activities are being performed

What exactly are you accomplishing with your budget allocation? Map your budgeted resources, external costs, and indirect costs to activities performed and capacity generated.

 

3. Track your IT services pricing

Simply monitoring your activities can be misleading. Evaluate the real return of your IT investments by tracking your IT service costing and pricing.

 

4. Understand what drives your IT spend

Connect the usage demand with the services delivered, and pinpoint exactly what drives your IT spend. When all departments see how their needs impact the IT budget, everyone will be held accountable.

 

5. Account for all assets

Analyse an operational view of your assets, both physical and virtual. Track your assets, their capacity, and what services depend on them.

 

6. Visibility across all IT contracts

Manage all of your contractual arrangements, including lease and maintenance agreements. Determine which contracts add value to your business and eliminate any unnecessary expenses.

 

When your IT team is equipped with clear, service-based data, they can make informed decisions that align with your business goals.

The best way to equip your IT team is with ClearCost’s state-of-the-art Intelligent IT Financial Management software solution. Schedule a demo with our team today.

CategoriesBlog

TagsIT Financial Management software, ITFM, ITFM software, IT Financial Management tool, CIO, IT Financial Management

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