The IT Leaders Budgeting Guide for 2021

As we approach the end of the year, company leaders are drafting budgets for 2021. For most IT companies, headcount represents 80% of the budget. Forward-thinking leaders are increasingly opting for more contractors. They provide greater flexibility during uncertain times and already possess mature workstyles that fit our current remote and work-from-home culture.

Generally, business leaders are prioritizing velocity of teams (i.e., results over activity), on-demand scalability, and access to the global talent pool without additional costs. Considering the cost-effectiveness of remote contractors – driven by lower tax burdens, no benefits cost, no office infrastructure or equipment expenses – contractors have become the ideal option for companies that cannot compromise delivery even during uncertain times.

With that said, the complexities of budgeting for 2021 should not be oversimplified. Our senior IT experts have compiled a list of important steps for every IT leader to consider. We invite you to check it out:

1. Evaluate the impact of COVID-19 on your business and budget allocations for 2021. Ask yourself:
   • Are we growing, shrinking, or freezing?
   • Which current initiatives / projects need to be scaled back or eliminated?
   • What new initiatives should be considered?
2. Assign a business value to existing and potential initiatives such as:
   • Drives revenue
   • Increases productivity
   • Reduces costs / operational overhead
3. Prioritize your initiatives into categories such as:
   • Must have
   • Nice to have
   • No longer necessary
4. Evaluate the costs and benefits of outsourcing vs. insourcing by asking:
   • Can we outsource internal projects to save money and / or time?
   • Can new initiatives be outsourced effectively?
5. Review the investments required to better support remote workers:
   • Equipment allocations
     • Computers
     • Monitors
     • Printers
     • Furniture
   • Technology and tools
     • Virtual private networks
     • Password management
     • Remote desktop tools
     • Data security tools
     • Encrypted communications
     • Mobile security

Are you looking for a trusted remote IT partner to help you get your 2021 goals off the ground? We’ve been partnering with business leaders since 2016.