IT budgeting is a complex task that every IT leader goes through annually, bi-yearly, or quarterly. Based on the scope, your team gets or loses resources. You all get the needed work setup and necessary tools and applications. However, not all executives like to delve into numbers or spend hours going through those datasheets. In this article at TechRepublic, Patrick Gray shares how IT budgeting influences your team’s goals.
IT Budgeting for Development
While you might not be directly involved in the IT budgeting process, you must know what the leaders do. It is easier to understand their terminologies and budget-related challenges once you have a basic idea about IT budgeting.
A company has several projects running at the same time. Some are priority projects without which your organization would not survive. Only a few are innovative projects for long-term achievements or futuristic goal fulfillment. IT budgeting enables leaders and senior leaders to decide how to allocate company funds to these initiatives.
Unless your team has a sufficient budget to support the project, you will not be paid on time. You will be heaped under a mountain of work due to resource shortage. If your client requests changes, it will take several days to get the actual job done.
Who Needs It?
IT leaders do the menial job of going through various budget sheets and preparing one for the next season. It has to be reasonable, or else the sponsors and influential stakeholders would reject it. The tasks you get and the intensity of it all depend on IT budgeting. If you have enough buffer to rerun checks, then you have adequate money to have room for correction.
The IT budgeting proposal reflects the IT strategy your leader has in mind. If the other stakeholders are already in agreement with the strategy, it does not take much effort to convince them for the budget sanction.
IT budgeting is not just about numbers; it is about the organization’s take on innovation and prioritization. Some companies do not have money to spend on innovative projects. Digital natives spent most of their capital on new ideas. However, the majority of organizations try to strike a balance between creativity and realism.
To view the original article in full, visit the following link: https://www.techrepublic.com/article/it-budgeting-the-smart-persons-guide/