Understanding the IT Budget for a Mid-Sized Company: Insights from TVG Consulting

When it comes to crafting an IT budget for a company with an annual revenue of $10–20 million, it’s essential to dive deep into the company’s operations, industry benchmarks, and the pivotal role of IT within the organization. At TVG Consulting, we specialize in providing top-tier IT consulting, IT support, and cybersecurity services, ensuring that your IT infrastructure is not just a cost center but a strategic asset driving your business forward.

This article will breakdown how and what does a IT budget typically consist of for a $10-20 Million dollar firm and how TVG can cut some of those overhead costs by %50.

Simplified IT Budget Categories for a $10–20 Million-Dollar Firm

1. IT Staffing Costs

  • Roles: IT Manager, Network Administrator, System Administrator, Help Desk/Technical Support, IT Security Specialist (if required)
  • Total Salaries: $495,000
  • Additional Costs: Overtime/Bonuses (~10% of total salaries) + Benefits (~30% of total salaries)

2. Hardware Costs

  • Components: Servers, Workstations, Printers, and networking equipment
  • Total Costs: $130,000 – $150,000
  • Annual Refresh Cycle: Typically, 20% of hardware is refreshed annually

3. Software Costs

  • Categories: Operating Systems, Productivity Software, Specialized Software, Security Software
  • Total Costs: $80,000
  • Annual Renewal/Subscription Fees: Typically, 20% of software costs annually

4. IT Services and Support

  • Services: Maintenance Contracts, Consulting/Outsourcing, Training and Development
  • Total Costs: $60,000

5. Miscellaneous Costs

  • Needs: Telecommunications, Data Storage/Backup Solutions, Disaster Recovery Planning/Services
  • Total Costs: $35,000

Total IT Budget Estimate

  • Grand Total: $1,040,000 – $1,064,000
  • Percentage of Revenue: ~6.9% – 7.1% of the average revenue

This framework serves as a rough estimate. Typically, companies allocate between 3% and 7% of upir revenue to IT, depending on the industry and the integral nature of IT in your operations. It’s paramount to customize this budget to your company’s specific requirements and strategies and to periodically review and adjust it to ensure alignment with the company’s objectives and industry dynamics.

A Proposition for Enhanced Efficiency and Security with TVG Consulting

Imagine a scenario where you could significantly elevate your employee performance, fortify your cybersecurity measures, and simultaneously reduce your expenditure on software and employee costs by almost 50%. What if you could achieve all this while also enhancing the IT services provided to your staff?

In this scenario you’d be paying about $42,000-$45,000(min -payroll, overtime,..) per month for IT staff of 4-5 with various skill sets.

What if we could show you how to reduce that number down to $18,000-$22,000 per month with more skilled engineers?

This is not just a hypothetical situation, but a tangible opportunity to optimize your IT infrastructure and strategy. TVG Consulting specializes in working with businesses in Greater Los Angeles, Nashville Metro, and expanding nationwide, delivering proven results while maintaining a highly responseive but low IT budget. Our unique approach ensures that, unlike our competitors, your budget remains fixed and predictable, freeing you from the worry of monthly hours that can unexpectedly inflate costs.

Why choose TVG Consulting?
  1. Proven Results in IT Consulting and Cybersecurity Services: We have a track record of helping businesses optimize their IT budgets while enhancing efficiency and security.
  2. Data-Driven Decisions: Our approach is rooted in hard numbers and analytics. We show you how partnering with us impacts your bottom line and drives growth.
  3. Tailored Solutions: We understand that each business is unique. Our strategies are customized to meet your specific needs and industry requirements.
  4. Growth and Expansion: Savings in IT costs translate to opportunities for reinvestment in your core business areas, fostering growth and expansion.

We invite you to explore how a strategic partnership with TVG Consulting can transform your IT budgeting and management. Let us show you the hard numbers and data-driven results that demonstrate how our collaboration can not only contribute to your bottom line in savings but also empower your company to expand and grow.

How do I contact TVG for a no-obligation conversation?

Garett Chipman, founder of TVG, is available to discuss any concern or scenario that you might need help unpacking. He can discuss how we can make a significant, positive impact on your IT budget and overall business strategy. His direct line is: 818-284-4118 or Garett@TVGConsulting.com

"We are a $20+ million manufacturing firm with a staff of over 200 employees. TVG came into our firm after previous IT comprimised our data. They not only uncovered major holes in our security but fixed workflows that allowed us to grow by 40% during the pandemic of 2021. They are always available, include weekly CTO meetings, 24/7 coverage so our systems are optimal and give great strategic advice. Highly reccomend."
COO (contact us for full testamonial)