Organizations need to allocate budgets across their various cost centers in an objective fashion. Firms that deploy robust budget allocation mechanisms achieve optimal allocation of resources across the different areas of the organization, which in turn enables realization of cost management imperatives together with continuity in business operations & performance.

Budget allocation, as practised in most organizations, is driven by specific demands from the various cost centers. The relative persuasive skills of different cost-center managers is often a key determinant of the budgets that get allocated. Firms need a scientific budget allocation framework that takes into account past budgets, historical budget utilization levels, business criticality of cost centers, resource mix & costs of cost centers, etc.

insAnalytics presents an easy-to-use Budget Allocation solution that optimizes budgets across the firm's various cost centres. The solution benchmarks the different cost centers along various user-defined parameters (i.e., criteria), such as business criticality, capex dependency, resource mix, historical budget utilization, etc. Mathematical & statistical modelling reduces these various parameters (or criteria) into a reduced dimension, so as to arrive at the optimal budget allocation across the cost centers. While based on the principles of scientific decision-making, the solution provides the flexibility to accommodate situational constraints that reflect business realities and accordingly tweak the budgets allocated to the different areas of the firm.