For CFOs and Controllers, IT spending has shifted from a background expense to a line item that directly impacts risk, compliance, and financial predictability. In 2026, the question is no longer whether IT deserves a meaningful budget. The real question is how much is appropriate for your business and how to structure that spend without surprises.
This article breaks down realistic IT budget benchmarks, what those numbers should include, and how financial leaders can plan with confidence.
Recent benchmarking research from Avasant’s 2024/2025 IT Spending and Staffing Benchmarks shows that IT spending as a percentage of revenue continues to rise across organizations. While exact ratios vary by industry and size, midsize organizations commonly fall within a mid-single-digit to high-single-digit percentage range (5-8%) when accounting for operational IT, security, and business support functions.
Where your organization lands within that range depends on three factors:
For example, professional services firms, financial organizations, and healthcare providers often trend toward the higher end of the range due to security and compliance obligations. Businesses with simpler environments may remain closer to the lower end.
The key takeaway for finance leaders is this: underfunded IT often leads to unpredictable downstream costs.
One of the most common budgeting challenges CFOs face is fragmented IT spend. Costs appear reasonable in isolation but add up quickly when reviewed holistically. A well-structured IT budget in 2026 should account for:
When these areas are bundled into a single, well-defined model, finance teams gain visibility and control.
From a finance perspective, inconsistent IT investment introduces volatility. Common cost drivers include:
These expenses rarely appear in the original IT budget, yet they directly impact cash flow and forecasting accuracy. Predictable spending reduces exposure to these scenarios.
Many CFOs are shifting toward flat-rate, all-inclusive IT agreements because they simplify forecasting.
This model provides:
When onsite support, cybersecurity tooling, and planning are included rather than billed separately, finance leaders gain clarity and stability. This approach also supports cleaner audits and stronger internal controls.
Before finalizing next year’s numbers, CFOs should ask a few practical questions:
If these answers feel unclear, the issue is often structure rather than spend.
In 2026, IT budgeting is less about technology and more about governance. The right level of investment supports compliance, reduces volatility, and gives leadership confidence in long-term planning.
For CFOs, the goal is simple. A stable, transparent IT budget that delivers peace of mind.
Starport works with finance leaders across Canada to create predictable, audit-ready IT cost models. If you would like a second opinion on your 2026 IT budget, schedule a discovery call and get clarity before the next planning cycle.