Posted by Derek Epps, TCC Senior Account Executive of Managed Services

As we say goodbye forever to 2017, companies are starting to look at the New Year. With a new year approaching, it is now time to start planning and budgeting. For many companies, this includes an “IT budget.” The size of the company and the needs of employees will determine how much a company budgets for IT. With technology moving quicker than the year passes, it is hard for smaller companies to keep up with it all. Still, many CFO’s and company executives realize the importance of keeping their systems running smoothly. This usually means either operational or capital expenditures each year that are allocated to technology.

According to the level of need and how fast a company is growing determines how much money to allocate towards the IT budget. This number can vary from 3%-7%. For a company with an annual revenue of 5 Million dollars, this would mean they would allocate $150,000-$350,000.00 per year. This includes all the software and hardware required to run their business.

In order to plan well, it is important to establish a budget every year. Many companies rely on outside IT consulting or managed services companies to help them plan for the New Year. TCC assists in not only planning budgets, but also analyzes each company by individual and the business as a whole. Because typical hardware warranties are for 3 years, companies should take a serious look at getting on a “hardware refresh” program. The same goes for software, since a general rule of thumb is not to get behind more than 2 versions.

Contact TCC today to start planning for the New Year!


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