IT spending and budgeting

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  • IT productivity

    IT productivity is a reference to the relationship between an organization's technology investments and its corresponding efficiency gains, or return on investment. 

  • IT cost structure

    IT cost structure is the relationship of different types of costs within a larger IT budget. 

  • hurdle rate

    A hurdle rate is the required rate of return above which an investment makes sense and below which it does not. 

  • sunk cost (SC)

    A sunk cost is money that has already been spent and cannot be recovered. Logic dictates that because sunk costs will not change -- no matter what actions are taken -- they should not play a role in decision-making. Emotionally, however, the more som... 

  • IT strategy (information technology strategy)

    IT strategy is a comprehensive plan that information technology management professionals use to guide their organizations. 

  • great recession (Great Recession)

    Great recession is a label used by journalists and  economists to describe a severe, prolonged economic downturn. 

  • EBITDA ( earnings before interest, taxes, depreciation, and amortization)

    EBITDA stands for 'earnings before interest, taxes, depreciation, and amortization.' 

About IT spending and budgeting

IT spending decisions are made based on the goals of the business and how new IT investments can add value to the organization, while the budgeting process allows CIOs to plan future investments in staff resources, technology initiatives and business programs. CIOs are constantly changing their IT spending and budgeting plans as many organizations are forced to do more with less, and limited financial, human and technical resources can often make things stressful for CIOs. Find the latest IT spending and budgeting information and advice for CIOs, including news, tips and other resources, in this topic section.