Technologies
How much to invest in IT in a company?
20 June 2023
During the 21st century, Information Technologies have completely revolutionized the world both personally and professionally. The evolution happened extremely quickly and companies had to adapt to catch up and thus invest more or less massively in IT. Computer systems whether software or hardware have become essential for any business, technology is one of the cornerstones of modern business success.
The COVID-19 pandemic has accelerated technological transformation. This acted as an accelerator of change and highlighted the advantages of the digitization of the economy and businesses.
In this article we will see what are the main reasons for investing in IT in a company, how to define its budget and what vision business leaders should adopt in relation to IT investments.
What are the main reasons to invest in IT in a company in 2023?
We see 6 major reasons to invest in IT:
- Flexibility in the business: Thanks to new technologies, you have the tools and the flexibility to allow you to meet your business objectives.
- Speed and efficiency: Investing in information technology will save you time. By automating your workflows and internal processes, you will reduce the repetitive work of your teams and so you can focus on other tasks with greater added value.
- Your data is worth gold, secure it! Your confidential data (patents, lists of your customers, your prices, etc.) must reflect the level of investment you make in cybersecurity.
- Comply with new regulations in force: Complying with legal requirements is increasingly mandatory and companies have no choice but to comply (Law 25 in Quebec).
- The bigger your company, the bigger the IT budget: Investments in IT and cybersecurity depend on the size of the company and the sector of activity in which it is.
- Be competitive: As much for your employees as for your customers, having high-performance computer systems is a must and avoids frustration.
What IT budget should be planned and how should it be allocated?
Depending on the size and the sector of activity of the company, the budget related to IT can vary. On average, companies spend between 1% and 9% of turnover on IT and cybersecurity. However, we must not forget the security expenses which continue to increase over the years. Cybersecurity must remain an investment priority for companies since no company is immune.
Also, innovation in IT is very rapid and important over the years. Business leaders need to stay on the lookout (via their IT department or their supplier) for the best at the right time to keep up with the technological train.
What vision to adopt regarding IT investments?
IT and cybersecurity must be seen as one of the pillars of the company like any other department (accounting, sales). Without a consistent investment in IT and cybersecurity, it will be difficult for a company to succeed and stand out from its competitors. Without good IT systems, you will face irritants, frustrations, financial and security risks.
In summary, budgeting for IT allows:
– Better productivity and performance within the company,
– A reduction in costs over the long term
– Better security (cybersecurity)
– Doing business with an IT and cybersecurity professional will allow you to be well advised and supported so that you can perform and be at the cutting edge of technology (efficiency, innovation, growth).
If you want to know more and talk about IT investment, or if you want advice, do not hesitate to contact us here