With all the craziness and uncertainty there is in the world right now, clients are asking themselves (and our virtual CTOs) an important question: what should we be doing with our technology budgets?
The instinct for many might be to pull back on spending. In some cases, sales and revenue might have been affected by the pandemic and economy. And even in cases where business has been steady, 2021 is going to be a tough year to forecast. Who knows what things might look like in a few months?
As you could probably guess, there isn’t one set answer on whether you need to increase your IT spending, lower your technology budget, or keep going forward as you have in the past. A lot is going to depend on your situation and future plans. However, here are a couple of things we think you should consider…
There Might Be Reasons to Cut Back
Let’s face it: this could be a time when you need to decrease your technology spending. If your bottom line is taking a big hit, then the last thing you want to do is to continue as if it’s business as usual, particularly if that puts important investments (like payroll) at risk.
If you do need to trim some fat from your IT budget, know that there are smart ways to go through such an exercise. Don’t simply look for the most expensive items on your list or cut services that seem unnecessary without considering the consequences. As an example, halting your expenditures for managed services support or backup and disaster recovery might save you a few dollars today, but could cost you huge amounts in the future.
If you aren’t sure where you should be looking to save money, talk to an outsourced IT professional who can help you go through your budget line-by-line to identify areas where you can safely cut back. In fact, this is something you might want to do regularly, even if your company is in a healthy financial position.
Avoid Making Cuts for the Wrong Reasons
Just as there are going to be business owners and executives who are going to cut the wrong items from their IT budgets, there are also going to be thousands more who will decrease their spending in the coming months for no good reason.
While it’s true that we are in an uncertain economy, that doesn’t necessarily mean it’s affecting (or will affect) your company in a significant way. If things are fine, this might be the time to take advantage, play some offense, and even lock in equipment or subscriptions at a favorable rate. There are lots of great deals out there right now, particularly when it comes to hardware and software.
Only you can make tough decisions for your business, but we don’t want you to act out of fear if there isn’t anything that should be troubling you. Again, if you aren’t sure what your technology budget should look like, you can always schedule a meeting with our team to get customized advice.
Need Help Finding Good Business Tech Answers?
It’s not always easy to find the technology answers you need. That’s why our experts and advisors get to know your business inside and out. If you’re looking for real insights that can help you manage plans, budgets, and more, contact the team at Fantastic IT to schedule a free consultation today.