Even in an economic recession, companies can maintain their competitive advantage by investing wisely in IT capabilities.
Although a Computer Economics survey suggested that median IT spending had declined 6.2 percent in 2008 compared to 2007, taking drastic measures to cut costs by sacrificing IT capabilities may disadvantage companies in the long run, said Paul Chisholm, chairman and CEO of mindSHIFT Technologies, a provider of managed technology services.
“Generally, [companies get] burned when they haven’t kept up with IT,” Chisholm said. “If you let IT go two or three years without spending any money, you’re really just putting a roadblock between you and your customers.”
Large businesses in particular have endured heavy IT budget cuts because they’re prone to making multimillion-dollar decisions on a daily basis. Nevertheless, it would be wise for companies not to neglect IT investments if they hope to remain competitive, Chisholm said.
“People today realize they have to continue to put money into IT even in the bad times, especially with customer-facing applications,” he said. ““If you’re going to scrimp on something, maybe [it should be something like not buying as many PCs], but the core infrastructure you’ve got to be careful about.”
Chisholm outlined a few IT strategies employers can take into consideration during challenging economic times:
- Implement strategic technologies that will reduce costs. “Software as a service is a way that companies save money,” Chisholm said. “[It works] via a ‘pay as you go’ model versus the traditional model, where organizations…
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