08.08.2023

How do I gain more control over my IT expenses?

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APPSYS JUNI 23 31


By the end of 2023, global spending on IT is expected to reach $4.7 trillion1. That's 4.3% more than in 2022. Despite the recession, investments in IT continue to grow. What are we spending our IT budget on in 2023? Has our behavior changed in recent years? And how do you gain more control over your IT expenses? You'll find out all this and more in this article.

How we're spending our IT budget in 2023

According to an analyst at Gartner, there's a notable shift in how we allocate our IT budget. While the focus used to be primarily on external outcomes, such as revenue and improved customer experience, companies today first look at internal optimization.

In the table below, you can see where investments are currently being made. The leaders are communication services, IT services, and software. In particular, the latter undergoes significant growth in 2023. All three contribute to the digital transformation and automation of companies, with a focus on business efficiency. Investment in devices experiences its largest decline in recent years. This is due to inflation. It's expected that this growth will only be equivalent to the growth of 2021 by 2026, depending on the economic situation.

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Budget Overruns Due to Rushed Pandemic Period

Due to the COVID-19 crisis, many companies hastily transitioned to cloud solutions without thoughtful strategies. This resulted in overconsumption. 38% of CIOs indicate that they underestimated the cost when setting up cloud environments, resulting in budget overruns2. Therefore, in 2023, they are focusing on curbing cloud-related costs and reducing overconsumption. 45% state that having more control over their IT expenses would help2. Additionally, there's a need for transparency, which would facilitate discussions with management.

Gain More Control Over Your IT Expenses
A first step toward improving control over your IT expenses is gaining insight into your IT environment. This is often where the problem lies. How do you start? Today's IT teams are often understaffed, and due to the busyness of other IT projects, they often don't have time to conduct their own analysis. In such cases, it's useful to consider hiring an external party for a comprehensive ICT audit.

But won't this cost my organization money again? It's best to view an ICT audit as an investment that pays off later. During such an audit, the current situation is not only mapped out, but you also receive solutions that can help reduce your costs.

During an ICT audit:

  • Unnecessary expenses are identified. Think of duplicate hardware purchases, unused software licenses, or unnecessary maintenance contracts. This can lead to savings of hundreds to thousands of euros per year.

  • Possibilities to optimize your IT environment are explored, which can result in a more efficient and profitable IT environment by automating inefficient IT processes. Managed Services can play an important role here. Your team no longer has to deal with repetitive tasks, and you pay a fixed amount per month, quarter, or year to easily keep track of your IT expenses.

  • The pain points of your IT security are identified. Knowing where the gaps in your network are allows you to ensure they are patched. By increasing your IT security, you reduce the chance of external intruders. These investments then help you avoid exorbitant ransomware amounts.

After a comprehensive IT audit, you have a clear overview of your IT activities and costs. This allows you to work on reducing certain costs and evaluate whether certain IT activities still contribute to the overall business strategy. Furthermore, you can also see which tasks could potentially be automated to avoid unnecessary costs.

Are you looking for a partner for an ICT audit?

At AppSys, we have all the expertise to conduct a thorough examination of your entire IT environment. After such an audit, you'll know what the pain points are and how to address them, all at your own pace. We ensure that after our conversation, you know what has the highest priority so you can continue building on a secure and reliable IT environment.

Do you have any questions? Feel free to contact us.