Why You Need a Tech Budget Evaluation
You can minimize IT spending with a technology budget evaluation. Modernizing your IT department can involve huge changes, such as transferring platforms, transforming the customer experience, and creating custom apps. All of these changes cost money, which might exceed your budget.
If your total cost of ownership continues to rise, but you’re still not at the level of innovation your company requires for consistent growth, you may need a tech budget evaluation. With a proper evaluation, you can reduce unnecessary tech expenditures so you can allocate funds more effectively.
Take your time and evaluate your tech budget. Examine all of the costs involved, the potential return, and the ROI from your current expenditures. Completing this process may feel time intensive but will go a long way towards improving efficiency and productivity, as well as profitability, within your organization.
Evaluating Your Tech Budget
You should follow through with an app rationalization plan for your business before evaluating your tech budget. App rationalization will highlight areas that can be trimmed, as well as weak areas. A tech budget evaluation can begin once you have a clear understanding of what you already have and what you need.
When calculating your tech budget, it is crucial to consider both the cost and potential benefits of the technology and the risks involved if the technology isn’t successful.
At a minimum, your tech budget should include the following:
- Staff compensation (internal and external)
- Hardware costs, including servers, computers, support, etc.
- Software licenses, subscriptions and support
- Project expenses broken down by each project
Your tech budget evaluation should also take into account your future goals. For example, if you are focusing on cloud integration, compute the costs involved in training and the actual costs of integrating new technology. You must also note the amount of productivity and operational cost savings that will result.
Tips to Minimize Tech Overspending
The first step in minimizing tech overspending is app rationalization, and the second step is creating a realistic tech budget that focuses on your goals.
Here are a five tips to reduce tech overspending:
- Focus on applications that give you more bang for your buck. You may not need all of the offered features immediately, but if you can see a future need as your company grows, the app may be a reasonable expenditure.
- Consider the features, price structure, and longevity of each platform you research. Bigger is not always better, so don’t get blinded by shiny object syndrome.
- Consolidate the tools used across the company instead of having different tools for each department. By consolidating these tools, cost-savings can be attributed to other needs.
- Don’t just focus on the best approach, but allow for a range of possibilities. Keeping your strategy in mind, but being able to make adjustments if necessary, will allow you to stay on track.
- Be sure to leave room in your budget for modernization as well as unexpected expenses that may pop up as the project develops. When you don’t have a fund for “just in case,” you may need to spend even more to fix the problems created.
Choose a Qualified Vendor
The best way to minimize IT spending is to work with a qualified vendor who knows how to choose the right applications for your business needs – both now and for future growth.
Now is the perfect time to start a conversation with the experts at rStar to learn how your needs and your tech budget can be best meet. We help companies maximize their IT investment especially Salesforce CRM. Our experts can work with you to determine what, if any, additional technology may help you achieve your sales, marketing, or operational goals.