The annual budgeting process is primarily based on historical data. Information technology managers typically use backward-looking budgets and estimates to predict future events in constantly changing business environments. However, the expectation that information technology spend directly contribute to revenue and profit growth is a forward-looking need. The key to reducing budget-to-actual variances and increasing investment returns is better collaboration between the technology and finance arms of an organization. Corporate finance professionals can significantly improve budget estimation, capital budgeting analysis*, and are better equipped to tease out the financial levers of budget optimization and spending efficiency. In addition, corporate finance professionals have in-depth experience estimating and managing budgets that absorb the ebbs and flows of business cycles and market demand. Forming information technology and finance cross-functional teams who work through the unique challenges that information technology managers face in sizing budgets and managing spend leads to a more diversified, risk-resilient I.T. investment portfolio that instills the confidence of business executives.

*ROI, NPV, IRR, Payback Rule