IT budgeting is the process of allocating funds for various information technology products, services, and projects. Typically, an IT budget will include the cost of outsourced support, estimated project labor costs, hardware and software costs, the costs associated with hardware warranties or software support contracts, the costs of hosted services, fees for voice and data services and more. An IT budget may also include staff labor costs, Some technology costs occur every month, others might only happen once in the year. A spreadsheet is a great tool for forecasting and tracking these costs.