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IT Budgeting and Spending Mistakes to Avoid in 2019

Posted 31 Dec 2018 in Pro-Tips & How-To

IT Budgeting Spending Mistakes to Avoid 2019

Worldwide IT spending is projected to rise over 3 percent towards $3.8 trillion in 2019, with greater increases for enterprise software (over 8% growth) and IT services (nearly 5% growth). Further reports suggest that small and medium businesses will increase their 2019 budgets too, with a focus on security (over 60%) and internal software (over 50%) in addition to cloud services and internal employee IT training (both nearly 50%).

While a heightened investment is wise, throwing money without proper consideration can result in a lot wasted capital. Today, we’re here to identify some of the biggest IT spending mistakes so that you can make a more informed decision in 2019 and beyond.

4 Budgeting Blunders Your Business May Be Making When it Comes to IT

1. Migrating to the Cloud Without a Defined Plan

Most businesses today are well aware of the mass migration to the cloud for its numerous benefits. The problem is, the migration process is often completed poorly and use of the available features is minimal due to a lack of training. As a result, the benefits aren’t fully realized and anticipated implementation costs can be higher.

In many cases, competing cloud services are available, each with pros and cons. You should work with an IT consultant to assess your applications, security requirements, data storage compliance requirements, and business requirements, to help you make the right decisions.

Make sure you use an experienced IT consultant and mature Canadian cloud provider.

2. Not Automating Redundant IT Tasks

Having IT personnel spend time on repetitive tasks is inefficient and cost prohibitive, their time is better spent advancing the business. The problem is, many IT departments are reactive and rarely focused on automation that can reduce or eliminate mundane tasks. With technology advancing so quickly, if your IT team isn’t automating, you’re falling behind.

Everything from asset management, data backup, printer installation, Windows and software updates, software installation, reporting, access permissions, synchronized passwords between systems, security, and much more.

By discovering new ways to increase efficiency and improve performance, you may significantly reduce overhead and free up your IT budget for additional technology initiatives. There are many cloud platforms that can assist. Budget for automation.

If you’re unsure what can and can’t be automated in your current IT environment, seek consultation from an IT professional.

3. Maintaining Instead of Innovating

Business owners and executives understand the importance of strategically and proactively managing their marketing budget to drive sales. Status quo is never good enough for client acquisition.

However, when it comes to the IT department, many SMB budgets still follow a reactive model that allows for little more than maintenance. If it isn’t broken, don’t fix it, right? While the reactive  approach is “easy”, it does little to protect your business and drive innovation.

Looking ahead, your IT budget should focus on progress. Be proactive. Innovation is no longer about gaining an advantage over your competitors, it’s about due diligence and offering your business the protection and resources it needs to be successful. According to a recent IT World Canada Census, CIOs are allocating more of their IT spending towards innovation than ever before. If you aren’t innovating, you’re falling behind.

What does innovation look like? It will vary by business, but a smart move in any industry is an investment into systems that leverage machine learning and artificial intelligence (AI). This is no longer a future initiative that you can bookmark for later. The signs that it’s time to use AI to innovate are crystal clear. If you’re unsure about how to leverage this technological development, or any other, a Managed Services Provider (MSP) can assess your business and its IT systems to uncover where the technology can be applied.

4. Buying an Enterprise IT Management Solution for Your SMB

Ultimately, to take control of your IT systems and appropriately manage them, you should be using an enterprise platform that offers asset management, monitoring, maintenance, automation, security, and remote support tools. The challenge is, the cost to purchase, deploy, maintain, and use an appropriate system is typically too high for a SMB.

To avoid the upfront cost, secure a partnership with an IT firm that has already invested in these systems and offers them as a part of their month-to-month services to you. The cost of inclusion in your IT support package can have you spending a mere fraction of what it would cost to do it yourself; you can enjoy substantial savings while reaping the enterprise benefits and an IT firm to walk you through the whole process. It’s a win-win-win!   

There’s a clear theme found at the conclusion of each point above. Mistakes can be avoided when you partner with a mature MSP or experienced IT consultant. Contact SIRKit today to learn more.

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