#Corporate budget planning how to#

We can see how average company IT spend has changed over the years: Company spend on IT changes in 2020Īverage IT budgets vary from year to year and are affected by things like industry, company size, and overall revenue. The 2017 survey found that enterprise organizations projected a 4.8% increase in 2017 IT budgets, and SMBs predicted a slightly larger increase of 8% from 2016. Larger companies (over $2 billion) spend a relatively tiny 3.2%Īs technology becomes a greater part of business operations, budgets have been steadily growing.Mid-sized (between $50 million – $2 billion) spend 4.1%.The average small company (less than $50 million in revenue) spends 6.9% of its revenue on IT.Small and medium businesses surprisingly often outspend larger ones percentage-wise when it comes to their IT budget ( ): Overall as of 2013, businesses seem to spend between 4-6% of their revenue on IT, and this range is recommended by CIO Magazine.Ĭompany size generally has a large effect on the budget size and should be taken into consideration when planning your fund allocation. This was a slight increase from the 2012 average, which was 4.7%. For 2013, it found that the average IT spending as a percentage of revenue is 5.2%. OVERALL IT SPEND AVERAGES AND YEAR-OVER-YEAR CHANGESĬIO Magazine conducts an annual State of the CIO survey and gathers data to compile an average spending budget across numerous companies. Rising above competitors to establish your business as the most progressive and forward-thinking in the industryĬustomer expectations are rising quickly and the bar is always climbing technology allows your business to compete and rise above in this digital world.Streamlining operations, reducing costs, improving efficiency, maximizing profit, minimizing waste, devoting talent to core business instead of overhead.Using customer demand to better guide the business.Supporting better relationships with key partners.Providing better and unique service to customers.The ability to reach more potential customers and develop a better business relationship with your consumer base.Some gains that come from well-invested IT dollars are:

Technology should be viewed as both a cost of doing business and an opportunity to do more. But IT is an integral part of nearly all organizations and can offer widespread and lasting benefits. Here we’ll help answer some common IT budgeting questions, examine industry benchmarks, and share insight into where businesses today are investing their IT budgets.Įvery business owner must decide where to allocate funds, and it can be difficult to reconcile spending a huge amount on IT without seeing immediate returns. Many owners make the mistake of using the same IT budgeting model every year, without considering changing company needs and technological advancements that could benefit them.īut deciding on your company’s IT spend requires more than just picking numbers that sound good! “Businesses are confused and uncertain as to what an appropriate IT budget is, and they don’t have a clear vision how these funds should be spent” ( American Structurepoint).

#Corporate budget planning how to#

This can make it difficult to determine how to allocate your business’ technology funds. Huge annual advancements in computers, phones, tablets, POS systems, cloud storage, data backup, software, and more create an ever-changing realm of IT possibilities. Technology seems to occupy a bigger position in our lives and businesses with each passing year.