IT Budgeting Tips and Preparing for Economic Uncertainty Amid the Unknown

Over the past two years, economies around the world have dramatically shifted. In addition to economic downturns, industries are experiencing challenges due to supply chain delays, talent shortages and more. As a new year approaches, IT leaders are left to forecast future initiatives and find areas of cost savings. Adding economic uncertainty to the already challenging task makes the issue far more complex.

Identifying where and how to cut costs isn't a straightforward process. Sometimes it feels like forces are working against you in the form of skill shortages, equipment delays, and the pressure to invest in digital transformation.

I’m no stranger to IT budgeting, especially in unpredictable times; here’s what my team is prioritizing in the short and long term.

Establish clear lines of communication

In addition to staffing experts in the field, IT teams must consider evolving technologies, services and increasing costs. Despite the difficulty of creating and managing a complex budget, a solid plan is vital to guide your team during the IT industry’s quick (and often permanent) shifts.

Effective communication with your staff is also essential when planning significant changes. Avoid operating in a vacuum when creating priorities; lean on colleagues, strategic thinkers, and knowledgeable vendors within your solution provider partnerships for insights.

Overall, communication and the necessity for change offer an opportunity for your team to grow and invest in new methods and technologies. These moments will challenge your team to address and create efficiencies, resulting in stronger, more skilled professionals.

Maximize existing equipment and investments

Both large and small organizations are familiar with doing more with less. In fact, supply chain disruptions over the past two years have monumentally impacted the delivery of new OEM equipment due to semiconductor shortages.

IT teams are getting creative with sourcing and repairing equipment to maximize current resources. Our teams at Service Express have been purchasing additional parts and hardware well before it’s needed to ensure we have the right equipment on hand. Instead of waiting months or even years for new systems, we’re taking advantage of recertified and refurbished options. In turn, we experience significant savings and extend the life of our investment.

In addition to lengthening hardware refresh cycles, we’re consolidating underutilized tool sets and subscriptions. The OpEx dollars saved will be applied to new investments that support the company’s goals and objectives.

Prepare for future priorities and what’s to come 

In addition to leveraging current investments, our IT team is establishing a solid work-from-home, work-from-office and hybrid approach. Economic and cultural shifts have already illustrated the demand for alternative ways of working; now, our challenge includes evaluating resources for video conferencing, collaboration tools and more.

Unfortunately, there’s no one-size-fits-all solution to prioritize, plan and forecast IT budgets. The good news is that cutting costs and meeting company expectations is possible. No matter how economic headwinds impact your industry, now is the time to find opportunities for resiliency.

Jerry Gran is IT Infrastructure & Security Manager at Service Express. Service Express is a data center solutions provider specializing in global multivendor maintenance, cloud, managed services, hardware solutions and more. Learn more about how Service Express can help your data center overcome supply chain roadblocks.