How much should the company spend on it?

Technology seems to occupy a larger position in our lives and business with each year passing. Great annual progress on computers, telephones, tablets, postal systems, cloud storage, data backup, software, and others make the realm that keep changing from the possibility.

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But deciding your company spent requires more than just choosing numbers that sound good!

Here we will help answer some general IT budgeting questions, inspect the industrial benchmark, and share insight into where businesses are currently investing their IT budget.

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Benefits of Technology in Business

Each business owner must decide where to allocate funds, and it may be difficult to reconcile spending a large number on it without seeing returns immediately. But this is an integral part of almost all organizations, and can offer broad and lasting benefits.

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Technology must be seen as the cost of doing business, and the opportunity to do more.

Some of the advantages that come from the IT dollar that are well invested are:

• The ability to reach more potential customers and develop better business relationships with your consumer base

• Providing better and unique services to customers

• Support better relationships with key partners

• Use customer requests to better guide business

• raving operations, reducing costs, increasing efficiency, maximizing profits, minimizing waste, persuading talent to the core business, not overhead

• Increasing above competitors to establish your business as the most progressive and advanced thinking in the industry

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Customer expectations rise quickly and the bar always climbs; Technology allows your business to compete and rise above this digital world.

 

Overall it spends average and changes in year to year

CIO magazine conducts the annual condition of the CIO survey and collects data to develop the average budget in various companies. For 2013, he found that the average IT expenditure as a percentage of income was 5.2%. This slightly increased from the 2012 average, which is 4.7%.

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Overall in 2013, businesses seem to spend between 4-6% of their income on it, and this range is recommended by CIO Magazine.

The size of the company generally has a great effect on the size of the budget, and must be considered when planning your fund allocation. Small and medium enterprises surprisingly often spend a bigger percentage - wise when it comes to their IT budget

• The average small company (revenue of less than $ 50 million) spent 6.9% of their income on it

• Medium sized (between $ 50 million - $ 2 billion) spent 4.1%

• Larger companies (more than $ 2 billion) spend a relatively small 3.2%

When technology is a larger part of business operations, the budget has continued to grow. The 2017 survey found that the company's organization projected a 4.8% increase in the 2017 IT budget, and SMEs estimated an increase of 8% of the 2016 slightly larger.

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