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Posted: Tue, May 13, 2008
Top IT organisations have formal budgeting processesWith the current business climate characterised by change, distributed environments, and tight margins, IT companies require a well planned budget, if they are to be successful in their decision making throughout the year, new research suggests.According to Aberdeen, 91 per cent of best-in-class companies have formal budget and planning processes in place, something that is crucial if they are to remain flexible in the face of changing circumstances. However, a survey of firms revealed that 43 per cent of all companies do not adjust their budgets during the fiscal year, while a further 20 per cent only make the rarest of adjustments. With this being the case, Aberdeen highlighted that accuracy in planning is of paramount importance. "Forecasting has become the mode by which companies report their expected performance based on recent actual performance combined with knowledge about the future, such as revenue backlog movement and sales pipeline integrity," said Cindy Jutras, vice president of Aberdeen. "The accuracy of forecasts is becoming more important as top management, board members and investors demand more predictability," she added. Meanwhile, IDC has predicted that worldwide IT spending will increase by 5.7 per cent this year, a slight slow down from the 7.2 per cent growth exhibited last year. 
© Adfero Ltd
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