10 Things to Prepare Your IT Budget for FY25

As we approach the new fiscal year, many organizations are deep into their annual budgeting cycle. With January marking the start of FY25 for most, IT leaders must align their budgets not only with organizational goals but also with the dynamic macroeconomic landscape. This article is a result of extensive discussions with over 12 different companies and numerous business leaders across industries. Their insights and experiences have significantly shaped the perspectives shared here. Here’s a guide to the top 10 considerations to prepare your IT budget effectively for FY25:

1. Interest Rates: Expecting a Decline

Economic indicators suggest that central banks may begin lowering interest rates, fostering a more conducive environment for capital projects. The  IMF World Economic Outlook, 2024, predicts monetary easing in many regions. Use this opportunity to drive investments in IT infrastructure and innovation projects that fuel growth. Additionally, a favorable interest rate environment may create merger and acquisition (M&A) opportunities, enabling strategic expansion and capability building.

2. Tariffs and Trade Disputes: Strengthen Supply Chain Resilience

According to McKinsey’s Supply Chain Report, global trade disputes continue to create uncertainties. Diversifying supply chains through technology-driven solutions such as real-time tracking and supplier management tools is key. Gartner highlights that companies investing in digital supply chains see 20% improved efficiency.

3. AI: Early Days, Big Potential

While the adoption of AI is still in its early stages, PwC's Global AI Study estimates AI could contribute $15.7 trillion to the global economy by 2030. With several AI options available, including application-centric and broader platform-centric solutions, it’s critical to take an objective view of what works best for your organization before making holistic investments. Invest in initiatives that deliver measurable ROI while positioning your organization as a technology leader.

4. Cloud Licensing: Navigate Usage-Based Models

With the evolution of cloud licensing models, Flexera’s State of the Cloud Report, 2024, highlights the growing adoption of pay-as-you-go models. Projects focused on Software Asset Management (SAM) and Hardware Asset Management (HAM) are essential to maximize ROI and minimize overspending.

5. Process Improvements: Uncover the Silos

Although digital transformation has been a buzzword for years, Forrester Research points out that 70% of digital initiatives fail due to process inefficiencies and system silos. Conducting deep dives into workflows can uncover hidden opportunities to streamline operations and improve efficiency.

6. Innovation: Upgrade Systems for Top Talent

According to Deloitte’s Tech Trends 2024, 86% of IT leaders cite outdated systems as a barrier to attracting and retaining top talent. Regular hardware and software upgrades are critical to providing the tools needed for productivity and innovation.

7. Learning and Development: Embrace Collaborative Learning

A LinkedIn Workplace Learning Report found that 94% of employees are more likely to stay at a company that invests in their learning. Moving away from traditional methods to collaborative, tech-enabled learning platforms ensures better engagement and skill development.

8. Technical Debt: Address It Now

According to Harvard Business Review, technical debt grows by 20-50% annually if not addressed. Proactive management through scheduled audits and remediation can prevent ballooning costs and system inefficiencies.
Additionally, with each cloud application offering multiple releases per year, failing to stay current could mean leaving valuable functionality on the table.  Jade’s cloud consulting services and solutions, like Jade Cloud Fit or Convertorama, can help your organization remain up-to-date and leverage the full potential of your cloud investments.

9. Transform Go-to-Market (GTM) Strategies for Growth

The era of pent-up demand following COVID-19 is over. Companies now face the challenge of driving strategic growth while maintaining the highest level of efficiency. Transforming GTM processes is critical, with a focus on streamlining operations, integrating tools, and enhancing the overall customer experience. Investing in GTM improvements will ensure your organization remains competitive in a demand-driven market.

10. Security and Zero Trust Initiatives

With cyber threats becoming more sophisticated, investments in security must be a top priority. The Cybersecurity Ventures report projects that cybercrime costs will reach $10.5 trillion annually by 2025. Strengthen your organization’s defenses through Zero Trust frameworks, advanced threat detection, and identity management solutions. Proactive measures in cybersecurity will safeguard not just your data but also your reputation and operational continuity.

Conclusion

Preparing your IT budget for FY25 requires a balanced approach that considers macroeconomic trends, technological advancements, and organizational goals. By addressing these ten factors with supporting data, you can ensure your IT initiatives are both forward-thinking and aligned with your company’s broader strategic vision.

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