IT Budgets Must Grow for Organizations to Stay Competitive

With 2018 ending, organizations must now plan and decide how much funding to dedicate to IT during 2019. In a tech-dominated world, IT leaders know their IT budgets need to grow. Otherwise, their organizations cannot maintain a competitive edge to thrive next year, and beyond.

Meet New Challenges with Higher Budgets

According to the Insight Intelligent Technology Index survey of IT professionals, the chasm widened between the IT budgets organizations implemented and the IT budgets they needed to accomplish their objectives during 2018.

“Even with larger budgets, IT leaders lack the resources they need to both manage business today and prepare for tomorrow’s demands. As a result, IT is still perceived as a cost center. Yet, IT investments can deliver real business outcomes,” the survey states.

Looking back at the worst hacks, cyberattacks and data breaches of 2018, it’s likely no surprise that security is the top concern of IT professionals. More than 66 percent of IT pros at large organizations say spending for security must increase.

It’s expected that 83 percent of enterprise workloads will be in the cloud by 2020. And, with organizations budgeting more for cloud-based services in 2019, there’s a bright future for cloud investments. “The index results suggest more businesses are putting an emphasis on managed services to get there,” says David Mayer, Vice President and General Manager of Connected Workforce at Insight.

Tech Pro Research, a provider of IT decision support for business leaders, surveyed more than 100 IT professionals worldwide. Its survey concluded that one shift in IT spending emerging in 2019 is employee training, which is a top IT priority for 44 percent of respondents. Such a shift is easy to explain. As new employees need training and existing workforces need retraining, technologies constantly evolve.

Overall, 89 percent of IT budgets are expected to either grow or remain the same in 2019, according to Spiceworks’ 2019 State of IT report. Across all sizes of companies, organizations expect IT budgets to increase on average by 20 percent Only 6 percent of companies expect a decrease in IT budgets, according to the report.

“Many businesses are increasing IT budgets to replace outdated infrastructure, address the new reality in cybersecurity, and support digital transformation initiatives. For large businesses, the movement to cloud-based infrastructure will help drop expenditures in total cost of operations,” says Rob Robless, VP of Global Practices and Strategy at Small Footprint Inc.

Conclusion

It’s become impossible for organizations to stay competitive with limited IT resources. Every business seeking a competitive edge must first address the challenges of digital transformation. Typically, this involves securing business-critical infrastructure and data, and successfully migrating some workloads, to the cloud.

This is where a leading managed IT services provider comes in. An MSP can offer a full breadth of managed IT services to help organizations increase productivity, customer satisfaction and profitability, while reducing IT costs by 20 percent to 30 percent. Now, that’s a good way to get more bang for your IT budget.

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