COVID Cut Your Budget by 7.3%: What You Need to Do
What You Need to Do If you've read the latest Gartner report, you know that IT spending is down this year by 7.3%. Looking at the categories, the most dramatic budget cuts are being felt in devices, down by 16.1% and data systems, down by 10.3%.
Why is this? As you can guess it's COVID-19 related, as are so many issues and challenges these days. It is, according to Gartner VP of Research, John-David Lovelock a "reaction to revenue uncertainty."
Looks like the rocky revenue road will continue at least in the short term.
What does this mean for IT departments? It means that smart IT managers will look for ways to accomplish three things:
- Control expenses
- You may think you’ve already nailed this. But a second look might make sense at this point. Are you paying invoices that might have errors? Are you paying for old inventory? Could your old contracts use some re-negotiating? These are areas where thousands of dollars can be saved. Now is a good time to put more focus on them.
- Sharpen up plans for the future
- Are you prepared for an eventual return to a “new normal”. What will that look like? Chances are much different than pre-COVID. Are you prepared for more remote workers? What new technologies might make sense over the next few years? Are you ready to hire and train a new generation of IT talent?
- Demonstrate value to the C-suite
- This has always been a challenge for IT/Telecom managers. But it may become even more critical in the post-COVID environment where senior management will look for those team members who can add significant value to their strategic planning moving forward. You will want to demonstrate that you are not only running a tight ship, but that you have solid ideas for the use of technology in your organization to optimize the quality of applications and usefulness to employees.
These are challenges and now is the time to get organized. The last thing you want to do is pull the blanket over your team and wait this out. Moving past the twists and turns of COVID requires all hands on deck, with a plan to make better use of what you have today and innovate when budgets loosen up again.
We're here to help, by the way. We work with hundreds of companies on a regular basis to help them optimize their technologies and manage expenses more effectively. Contact us
, we'll be happy to share our thoughts and experience with you and your team. Let's get through this together and come out stronger on the other end!