IT Budget Planning With Data, Not Guesswork
· 9 min read
It's budget season. The CTO submits an engineering budget request: $8.2M for next year, up 18% from this year. The CFO asks for justification. The CTO points to headcount growth, salary inflation, and a list of planned projects. The CFO pushes back: "Can we do it for $7M?" The CTO says no. They compromise at $7.5M.
Neither number is based on data. The CTO added a buffer to last year's spend. The CFO cut it by a round number. The compromise has no analytical basis. Both sides walk away slightly unhappy. A Deloitte CFO Survey found that technology spending is consistently one of the hardest budget categories for finance teams to evaluate — largely because the inputs are opaque.
This is how most IT budgets are built. It doesn't have to be.