Business is becoming ever more reliant on tech, and companies are increasing their IT budget limits like never before. More than half of North America and European Companies spent more on IT in 2022 than in previous years, and the trend has only continued into 2023. With the increasing growth of hybrid and remote work, coupled with newly available technologies, many organizations are realizing the importance of investing in high-quality IT infrastructure.
While this is often the most efficient and cost-effective move in the long run, these changes require new and sometimes dramatic changes to your IT budget. Today we’ll look at some ways to effectively manage your IT budget and plan ahead for new technologies in 2023.
1. Evaluate Your Current IT Systems
The first step in assessing your annual IT budget is evaluating your expenses from the preceding year. Would it be beneficial to remove any of the items you’re currently paying for? Consider things like subscriptions, unused licenses, or equipment line items that you no longer need. This is especially important in 2023 when many companies are adopting AI tools like ChatGPT in place of previous software solutions.
The next step is to look at the IT assets your team is currently using. Which are still up-to-date and relevant for the year ahead, and which will need to be updated or replaced in the coming year? It’s also worth noting that not all older tech is necessarily bad. Consider your upgrades based on need and how well the tech you currently employ serves your needs. This is especially true when you may not have the IT budget space to upgrade all of your tools each year.
2. Budget for Upgrades Based on Urgency
Once you have an idea of the state of your IT systems, you can create a more informed budget. For the most effective IT budget, focus on your daily operating needs, the items that contribute to your company’s growth, and items that facilitate innovation. Once you’ve set the budget for any critical system maintenance and upgrades, you can allocate your remaining IT budget space to less-needed assets.
Now is also the time to plan ahead and ensure that your annual IT budget is proactive, with vital upgrades and emergency funds built in. Waiting to set money aside until an electronic device fails can lead to delays, increased downtime, and unbudgeted expenses. To avoid these issues, closely track the life cycle and the condition of the equipment you currently have. Remember that tech needs can change at the drop of a dime, so leave room for flexibility.
3. Cover All Your IT Budget Bases
While some elements of your IT budget are more important than others, don’t become so focused on certain needs that you overlook less obvious assets that may demand some expenditure. This can be especially easy to do if your company has been introducing exciting new AI-powered technology to replace older, less capable tools.
Before signing off on your budget, double-check any relevant areas you may have overlooked. These may include:
- Hardware: All the infrastructure equipment that your company needs. This includes electronic devices, servers, workstations, and the costs of support and maintenance.
- Software Licenses: The costs of software applications and development. This includes one-time payments and subscriptions, including any new AI tools your company plans to adopt.
- Training Expenses: Certain IT assets may require funds to train employees on their use through training programs and educational materials.
- Recurring Payments: In addition to licenses, there may be other subscription services needed to carry out daily operations — for example, third-party IT support or maintenance.
ITAD Services
One of the most often-overlooked aspects of any IT budget is your IT asset disposition policy. When creating a new budget, making sure to include a line item for ITAD and the safe handling of your outdated IT equipment ensures that your new year’s ITAD budget is truly comprehensive, from start to finish.
Implement Your ITAD Plan with FAMCe
Keeping track of your IT devices, creating an IT budget, and enacting your plan can be challenging. At First America Metal Corp. (FAMCe), we can handle all of your ITAD needs and dispose of your unwanted electronics securely and ethically.
First America is an R2v3-certified leader in ITAD, electronic recycling, data destruction, and nonferrous metal recycling services. We offer a wide range of recycling solutions designed to meet our clients’ unique needs in a safe and eco-friendly manner.
We specialize in secure, innovative electronics recycling services for businesses that need to safely dispose of electronic scrap, high-temperature alloys, and nonferrous scrap. Our level of expertise, unparalleled customer service, and aggressive pricing make First America the leading option for almost any recycling need.
Need your metal recycling or want to have your company’s electronics safely and sustainably decommissioned? Learn more and get in touch with us at firstamerica.com.
