News and Insights – January 2017

Happy New Year from Virtus Group! As we dive into 2017, many small and medium-sized businesses (SMBs) are focused on budget planning. But what’s often overlooked is how IT budgeting can drive—not just support—business growth. In this month’s issue, we explore smarter ways to think about IT budgeting in the SMB space.

Smarter IT Budgeting: Turning Cost Centres into Value Creators

Traditionally, IT is treated as a cost to control. But for forward-thinking SMBs, IT is an investment with measurable returns. In 2017, we’re seeing a shift toward more strategic IT spending, especially in markets like Argentina, where mid-sized organisations are embracing digital transformation to remain competitive.

IT budgeting shouldn’t be about slicing costs—it should be about mapping spend to impact. That means asking key questions: Which systems or services enable new revenue? Which reduce downtime? Which free up team time or improve client delivery?

Common areas of investment we’re recommending this year include:

• Cloud infrastructure with scalability for seasonal demand
• Collaboration tools (especially for remote or hybrid teams)
• Business continuity tools: backup, disaster recovery, monitoring
• Cybersecurity posture upgrades (especially with phishing and ransomware rising)

Steps to Build a Realistic IT Budget

Most SMBs don’t have an internal CIO. That’s where external guidance can help. Here's a 5-step approach to building a smarter IT budget:

1. Define business goals: growth, retention, efficiency, etc.
2. Audit your current IT environment and costs
3. Map technology investments to business outcomes
4. Build a budget with OPEX/CAPEX categories
5. Prioritise based on impact and risk

To help, we’ve prepared a simple IT Budget Planning Template. Here is the resource:
👉 2017_01_01_IT_Budget_Planning_Template.html

Why Now?

IT leaders are reporting that organisations with more strategic budgeting are more resilient to change and less vulnerable to disruption. Whether you’re investing in automation, replacing legacy software, or just refreshing your hardware, aligning IT with your goals from the outset pays dividends throughout the year.