Riordan Amended IT Budget Essay Example for Free

Riordan Amended IT Budget EssayAmended Riordan Manufacturing IT BudgetThe executive board for Riordan has tasked education Technology with reducing their overall draw out by two percent, while providing an increase of four percent to hardware descent distri providedor point, software course of instruction item, and outside IT support services. There are many roues at heart the figure that go off be cut immediately to provide the needed compute cuts, but it is great to make sure that none of the services being provided to lag will suffer with the adjustment to the cypher. This theme will discuss the current budget, the increased made to the quest line items and the overall budget decrease. The makeup will also justify the heightens made to the budget.CURRENT BUDGETRiordans current IT budget consists of $1,567,750 being spend on salaries, benefits and bonuses. Another $333,500 is being spent on Operating hails. The total IT budget is $1,901,300. In enact to incur the expected two percent decrease, IT will need to cut $38,026 from their budget. The hardware line item has a total budget of $8,500 and the four percent increase totals an additional $340. The software portion of the budget has a total of $45,000 when you include the line items for software licenses and maintenance. The four percent increase for this line item will cost Riordan an additional $1,800. The outside IT support services has a budget of $93,600 when you included the contracts and the hired lines line items. The increase for this portion of the budget totals $3,744. The total union needed to increase each of the put across line items by four percent is $5,884.WHERE TO CUT BUDGETAfter increase the specified line items as pass on by the executive board, the IT department is left with the need to cut nearly $39,000 to meet the two percent budget decrease. This would bring the total IT budget down from $1.91 million to 1.87 million. The first flummoxs to reckon for declines are any miscellaneous projects or non-essential spending within the budget. The first line item to visit would be the diversion portion. Currently, the IT department is spending $1,400 for entertainment.I would adjust the budget and allow $200 to be spent every four months, which will total up to $600 dollars a year. While I interpret the need to entertain or reward the IT department for a job well done, it is not necessary to entertain them nearly every month of the year. Quarterly job well done or entertainment is enough to keep team members motivated, but not enough to become an expectation. By reducing the amount of entertainment, the IT department will recognize a cost savings of $800. This leaves a balance of $38,200 in place to meet the reduction goal.The next place I would check for reduction is in the pilgrimage budget. in a flash I do understand that Riordan has three stances worldwide and sometimes it may be necessary to travel to a location, but ther e is no need to travel every month of the year. Travel could bechance twice a year, February and June. The rest of the months would be cut out.The IT department can set up Skype accounts, or WebEx accounts to allow the managers to communicate about projects and to take care of the issues that were normally handled with the travel budget. Skype allows users to communicate impertinence to face while the WebEx account allows the users to see each others screen and collaborate. The travel budget would go from $22,000 to $7,000. This is a cost savings of $15,000 and now only leaves a balance of $23,200 that must be shortend from the budget.The last place where I would adjust the budget would be the special projects line item. This line item has $150,000 allocated to it, but no specific projects laced to it. I would reduce the budget to $126,800 which would takecare of the remaining shortfall to reduce the overall budget by two percent. This final reduction will take the total IT budg et to $1,862,300.NEW BUDGETI was able to reduce the IT budget without losing staff. This allows Riordan to continue with the plans to move the China location to Shanghai. The new budget also allows for the IT Department to continue their hardware purchases, software licenses and IT support services. The new budget is as followsThe highlighted sections include the reductions made to meet the requested two percent decrease.SUMMARY OF CHANGESTo meet the requested two percent budget reduction, there were three line items that were reduced. The first group was the travel line item. This line item was reduced to $7,000 and was reduced because staff members can assimilate video conferences using Skype and can collaborate via WebEx on projects. While some travel is necessary and reflected with a budget of $7,000 some work can be completed from their local offices and thereby eliminating the monthly trips between the three locations.The next reduction made was to the entertainment line item of the budget. While there is a need to keep the staff happy by providing entertainment or rewards for a good job, the rewards can be better meetd by making them an expectation. I dont see a benefit in completely removing the entertainment budget, but there was a benefit in reducing the amount spent on entertainment/rewards. The budget was reduced to allow for entertainment/rewards quarterly. This can motivate employees to work harder to be one of those chosen to receive a reward every quarter. The entertainment budget was reduced to a total of $600.The last change made was a reduction to the special projects line item. Thespecial projects line item was reduced to $126,800. The suit for the reduction was there were no special projects tied to the line item. Because there were no special projects tied to the line item, it is easier for IT to adjust to the reduction before planning any special projects.CONCLUSIONThe IT department was tasked with increasing the following line items by four percent software, hardware and IT support services. But the overall budget also had to be decreased by two percent. This was done by first increasing the requested line items and then decreasing the budget to the requested levels. It was only necessary to reduce three line items, the entertainment section, travel section and special projects. The reduction of these three line items do not have a huge impact on the IT department but allows the department to meet the budget reduction request.