A Primer on IT Budgeting
A senior manager with Congruity in Pembroke, Massachusetts, Evan Loring works closely with large enterprise corporations, helping them manage their annual IT budgets. Evan Loring reviews support and maintenance expenses, researches manufacturer offerings, and sells new solutions to larger companies.
IT budgeting often begins with an executive summary, which details how money will be allocated to IT initiatives. Executive summaries enable companies to translate their overarching IT strategies to specific language and financial plans. Companies with a predictable IT load might prepare these summaries annually, while companies with complex IT operations might revise these summaries with each major initiative.
Perhaps most importantly, businesses use IT budgets to quantify their cash flow. Business leaders can also review their IT budgets to assess whether their investments align with their organizational priorities. By identifying areas of overspending and cutting these programs, businesses can save a great deal of money. Underspending can result in inefficient budgeting, as in the case of improperly supported programs such as a mobile app rollout without sufficient training.