Tips For Stretching It Budgets

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Tips for Stretching IT Budgets In today’s multifaceted business environment, technological needs are constantly changing. In fact, now days IT has became a critical initiative for success. With the widespread use of IT, organizations face the challenge of increasing competition, expanding markets, and rising customer expectations. This increases the pressure on organizations to implement various financial budgeting strategies that could potentially lower the cost. Therefore, a concept that recently has gain momentum, and is becoming a popular practice in most organizations is IT budgeting. According to Baker (2009) the six strategies that are effective in controlling IT budgets are: repurposing the already implemented software, efficiently…show more content…
In other words, which means to expand the use of the same software towards different functionalities, for instance utilizing the Numara FoorPrints software from IT services to HR department (Baker, 2009). For an effective IT budgeting, IT leaders need to execute viable decision-making ideas that can result into monetary savings in the long run (Heier et al., 2008). Similarly, repurposing of the software positively effects the organization, by saving an amount that would have been spent on a new software purchase, and creating some extra budget that could be invested towards other strategic investments or initiatives (Heier et al., 2008). In terms of the operations cost, even though the repurpose might slightly increase its maintenance cost if the software has already been used for many years, but still by evaluating the whole operational budget for two different functions it still is a cost effective-strategy (Heier et al., 2008). Additionally, it serves as a valuable asset to the organization, in terms of saving both time and money of their IT staff, as they no longer are learning totally new software. On the downside, there might be certain hidden operational costs involved that might require more maintenance, for instance the software can have limited memory or processing capacity, so in such a case it might actually cost more to repurposing the same software (Heier et al., 2008).
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