Daniela McVicker is a blogger, a copywriter and a contributor to TopWritersReview. Her focus is on boosting the effectiveness of business communication, leadership and management. She does that through sharing compelling stories involving leadership presence on her Twitter page and creating content that's helpful for building the relationship between a leader and employees. Having MA in psychological science, Daniela aims to keep up with trends and has just finished a PMI project budget management course. You can find more of her budget management tips on Bloominari.com and more.
Project managers know that staying on top of their budget is often challenging. Especially in IT, the happiness of your clients is usually connected with your ability to stay within the limits of your project budget. To complicate things further, budget management is a complex task. So, whether you're outsourcing your IT projects to a software development company, or whether you have an in-house IT department to take care of, then you have to pay extra attention when it comes to managing the budget.
Regardless, in each scenario, the company has to manage the budgeting aspect differently. For instance, getting a realistic number on the project budget is incredibly difficult. Not only the venture won't be able to get relevant info on the time and efforts involved in a project, but also on the fixed costs the project costs. For companies with in-house departments, the expenses for IT projects come as corporate expenses. Thus, having a clear "project" cost estimation at the end of the journey is unrealistic.
There's much more to it than simply controlling the amount of money that you spend. In fact, you can go over budget, and still have done a good job at managing your project's budget. At the same time, coming in under budget isn't a victory if you haven't wowed your client. A sizeable portion of good budget management is communicating that you've done well with the resources you've been given.
Managing your project's budget is something that you must stay on top of during all phases of your project. Fortunately, there are some steps that you can take to make all of this a bit more manageable. Below, we've listed 6 action steps that you can take to keep your budget under control and manage any budget-related challenges that you may face.