Impact of Covid-19 on IT Budget Plans

Anggaran Belanja IT

The not over time of the Covid-19 pandemic has made the global economy shrouded in uncertainty, several business sectors regarding the IT Budget Plans have not been able to rise from the crisis which forced them to carry out budget efficiency. Uncertainty in the world economy also indirectly affects corporate budget planning for 2021.

How Covid-19 affects IT operations in 2020

Bagaimana Covid-19 mempengaruhi operasional IT tahun 2020

Almost all industrial sectors suppress their IT operational budgets throughout 2020. However, the biggest absorption of IT budget throughout 2020 is invested in technology -technology that supports Work From Home (WFH). The weakening of the world economy also ‘has an uncertain effect’ in the 2021 budgeting process.

Based on the survey results, 62% of companies will ‘tighten their belts’ and be more careful in allocating their budgets. 13% are not sure whether to increase the budget or reduce the budget. 12% of companies will still increase their budget while the other 12% will not be affected.

Bagaimana Covid-19 mempengaruhi operasional IT tahun 2020

The following data shows the forecast of priority budget allocations for IT in 2021. As many as 26% of companies will allocate their budget for technology Remote Working, 22% for network and devices security that support Remote Working and 19% say that some IT staff will be subject to WFH permanently. .

Hal yang Perlu Dipertimbangkan saat Penganggaran IT 2021

Things to consider when the 2021 IT Budget

CIO must consider several things in planning the 2021 budget, including:

  • Remote work supporting technology

With the implementation of lockdown, making methods remote work the only option to keep business running, CIOs focus on budget for providing remote access to the local office network, ensuring secure and barrier-free connections.

  • Cloud infrastructure

Remote work forces CIOs to consider investing in cloud computing. Office applications will be very effective when running in the cloud, so employees can access these applications from home.

  • Recruitment delays and non-essential stop projects.

CIOs usually have strategies and innovations to implement new technology in the company, which requires new talents. However, the Covid-19 pandemic forces CIOs to postpone recruiting new talents and stop non-essential projects, so that company budgets are allocated to ensure business continuity.

The Covid-19 pandemic has completely changed the strategic direction of many companies in the world, business sectors that have been directly affected by the pandemic must carry out budget efficiency so that businesses can survive. Meanwhile, business sectors that were not affected by the pandemic were forced to adjust their working methods, which also changed business strategies and changed the IT Budget Plans for the next year.

Here are some solutions that you can consider to save your IT budget in 2021:

  • Migration to the Cloud Cloud

technology can help reduce the budget costs needed for traditional computer infrastructure systems. With system integration cloud, then the budget that is issued can be adjusted more according to the amount of use. The cloud allows you to “pay as you go”, so the less your cloud needs, the less you have to pay. By migrating to the cloud, the need to purchase hardware at high prices can of course be suppressed.

  • Prioritize Optimization Programs

The goal is for companies to be cost effective and not to waste resources. For example, by switching to Your Cloud Spend Optimization can save 30% of your typical cloud monthly fee.

  • Limit Purchases of New Devices or Extend Lifecycle of Existing Devices

 Of course, by limiting purchases of new devices will greatly reduce spending. But how to solve the problem of “life” devices that are about to run out? Third-Party Maintenance can help extend the life cycle of your network devices or also consider buying a used device.

  • Partnership with MSP (Manage Service Provider)

By using MSP, the company’s monthly expenses can be budgeted well. In addition, MSP usually offers flexible SLAs that can be tailored to your needs. Even service MSPs can usually reach locations that OEMs cannot reach. Of course everything will be achieved if you choose TheMSP right.

The impact of Covid-19 will still be felt throughout 2020-2021. However, with good budget planning, we can continue to be optimistic.

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