This “simple” translates to investing only in what you really need and if you can’t define your critical points yourself, get an outside look through a consultant. You’ll better identify those “blind spots” and won’t waste your budget. Outsourcing IT management helps companies minimise stress and disruption during the digitisation process. This allows organisations to get the most out of their IT investment, meaning increased operational efficiency and reduced costs.
For organisations looking to adopt new technologies, IT consulting services can be beneficial in 3 major ways:
1. Consultants enable organisations to focus on their business:
Dedicated IT consultants and project managers handle the entire implementation of new technologies, from planning to official launch. While the organization’s leadership is often included and actively involved in the process, they should not be constantly solicited or distracted, the priority is to stay focused on the needs and operations of their business. In addition, consultants prioritise efficiency and communication, which can mean minimising day-to-day disruption for employees.
2. Consultants offer a level of expertise that is hard to come by in a traditional employer-employee relationship:
Specialized IT expertise relies on unique skill sets, certifications and first-hand experience, in other words, it’s not easy to find. In fact, a recent survey found that 67% of companies lack specialist IT expertise and 89% of IT managers find it difficult to recruit the talent they need. This is especially true when it comes to the latest and most revolutionary technologies such as cloud computing, virtualisation and cyber security.
3. Consultants protect the achievement of the expected results:
Hiring and training IT experts relevant to a project’s specific needs can be a huge financial burden.
Instead, consulting allows organisations to take advantage of the skills, experience and knowledge needed at a fraction of the cost.
The question that scares directors and boards:
What is the IT budget for next year?
As the trend is to do more with less, many organisations don’t see the link between the IT budget and protecting the business or improving productivity and efficiency, seeing it as a cost, not an investment. Even the address should be different, implying a different kind of assumption. The budget does not belong to the IT department but to the organisation itself, whose activity is supported by technology.
What does an IT BUDGET include?
An IT budget is the total allocation of IT expenditure over a 12-month period. It consists of capital expenditure (CAPEX), such as the costs of purchasing hardware, servers and equipment. It also includes operating expenses (OPEX), which consist of costs for purchasing Software-as-a-Service (SaaS) licenses, Infrastructure-as-a-Service (IaaS) subscriptions, internet, utilities and IT management services on a monthly subscription basis. Overall, the IT budget should take into account the costs of hardware, software, outsourcing, and especially disaster recovery, plus related support services.
Hardware:
Simply put, hardware is the physical components that a computer system needs to function. There can be many hardware components attached to a computer system: laptops and desktops, RAM, printers, monitors, hard drives, keyboards, sound systems and more.
Software:
Software can be represented by various programs or applications related to productivity, functionality or security.
Represents the use of external IT service providers to efficiently deliver IT management services for the entire IT system, data-center and cloud infrastructure solutions, all on a monthly subscription basis. It also includes technology deployment, installation, migration and regular maintenance.
Disaster recovery:
The method by which an organization intends to regain access and functionality in the event of a natural disaster, cyber attack, or even disruption is a disaster recovery plan. These services can include backups to a private cloud, prioritised restoration of critical data or systems, and cyber insurance to ensure risk management and recovery in the event of a disaster.
Without an IT budget that is structured for each of these components, an organization could find itself in the scenario of spontaneous needs arising and having to justify each IT expense as it arises, which is usually higher.
In addition, such a decentralised approach could leave room for the emergence of “Shadow IT”. It represents the implementation of specific technologies, applications and processes by individual departments at the expense of centralised IT. This often increases cybersecurity risks and decreases the sense of accountability.
Prioritisation of budgetary decisions:
Ensuring that company goals align with IT budget allocation decisions is a crucial aspect of successful budgeting. It is even more important to prioritise cyber security especially in the current context of evolving cyber security threats. An easy way to determine what priorities a company should prioritize when it comes to its IT environment is to conduct a direct assessment of IT security and infrastructure functionality.
An IT audit report generates a list of priorities, consisting of:
- Investments in technology and data-center solutions that improve operational and financial efficiency:
- Infrastructure as a Service; Software as a Service
- Cybersecurity protections that reduce risk and organizational resilience
- Cloud services that improve employee and customer experience
