IT Budgeting (3)

To arrange the IT Budgeting, the organization must have the document to provides guidelines / recommendations on how to go about developing and monitoring the IT budget. It will help with an overall organizational budget as well as with a budget for a specific project. It includes methods for estimating costs as well as tips for ensuring that the budgets are successful.


(1) Purpose
The purpose of this document is to provide guidance for IT managers / Directors in preparing the budgets of their departments. The document targets the IT managers / Directors as the main audience, because they make the decisions regarding the budgeting. This document is based on best practices; it is greatly inspired by the Financial Management component of the IT Infrastructure Library (ITIL) which represents a widely accepted best practice of IT Service Management (and soon to become ISO standard – ISO 20000).


(2) Document Structure
This guide aims to help effectively meet the challenge of constructing and monitoring budgets in IT departments, it has been written as clearly as possible to help the reader gain the most comprehensive understanding possible.


The document can be navigated from one related subject to another,
simply by clicking on the hyperlinks on the main dashboard. The main
sections of this document are:


- Financial Management for IT Departments: a general description of the concept of Financial Management for IT from best practices perspective

- What is a Budget: basic definition of what a budget is, and what is the meaning of budgeting process - Why to Budget: the benefits gained from budgeting, an the disadvantages of not-budgeting

- Elements of a Successful Budget: describes the anatomy of a budget in terms of how is the budget organized, what are the items that appear in an IT budget, and what are the properties of these items

- The Budgeting Process: describes the budgeting process in details

- Practical Approach – Budget in the Government of Saudi Arabia

- Methods of Budget Estimation: describes two famous methods of budget and cost estimation that are deployed and used widely by IT organizations

- Success Factors: provides some guidelines and advices for successful budgeting