Technology Costs-Where It’s Worth Your Business’s Spend

The pandemic brought about uncertainty and significant changes on a global scale in 2020, making it a challenging year. In addition to the devastating consequences on human health, the pandemic offered a host of commercial issues that led to economic instability, forced many businesses to close, and forced others to reconsider their business models. Due to the closure of enterprises and workplaces, remote work became necessary. In order to ensure business continuity, support remote work, and streamline corporate operations, IT departments have implemented technologies. They expanded information technology investment by putting money into technologies that allow for working from home as well as cloud computing, data analytics, and automation. A record-breaking $15 billion a week was spent by businesses on technology to equip the work-from-home workforce.

IT Spending for SMBs in 2021

Global IT investment will reach $3.7 trillion in 2021, up 4.3% from 2020, predicts Gartner Inc. Corporate boards confirm that the epidemic has increased IT investment to the tune of 70%. Changes in business operations brought on by the crisis and the requirement to assist remote workers are two factors that have contributed to the rise in spending. Hardware, software, and cloud services are allotted funds in IT budgets. The rise in IT budget and spending in 2021 will differ amongst industries. IT expenses have already risen in important industries like power and utilities, government, healthcare, technology, financial services, and professional services. For instance, the Bank of America Corp. intends to invest $10 billion on technology this year, of which $3.4 billion would go into brand-new technologies.

???Major Technology Investments for 2021

With the evolving trends and the rapid shift in the technological advancements, business needs have also evolved over the past few years. Businesses need to invest technology strategically to protect its operations and add efficiency to the process. Therefore the technology investment plans need deep understanding and research. In today’s world, many organizations are heavily spending on the following areas to make their business grow and flourish in a flexible yet safe way:

Why Budget for IT Costs?

Increase Revenue:?A research shows that SMBs that amplified technology adoption and investments during the pandemic are?42%?more likely to increase revenue.

Improve Agility:?In the competitive and uncertain business environment, businesses that budget their IT costs based on their needs and changing business landscape will attain competitiveness. Those that fail to plan for the future of technology will be left behind.

Cut Costs:?Budgeting provides guidelines for IT purchases and reduce the probability of failed technologies, thus saving costs.

Cater For Unexpected Expenses:?The COVID-19 pandemic taught businesses the need to budget for unforeseen costs. With employees working from home, companies needed unanticipated funds to facilitate remote work.

Cybersecurity, remote-work, customer-facing initiatives, and cloud services are among the major IT categories businesses should prioritize allocating IT budget. With remote work on the rise, cloud services and cybersecurity have proven fundamental for business survival.

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