IT Investment Deficit Results to Longer Economy Slump, Research Says

IT Investment Deficit Results to Longer Economy Slump, Research Says

According to a research from consultancy firm Ardent Solution, the dropping number of IT investments is impeding the recovery of businesses from recession. 
 

The research further noted that small and medium enterprises are plagued with various IT-related issues brought by budget constraints. Such issues include devaluation of system reliability or prolonged downtime. Increased maintenance expenses for legacy systems, IT security issues, and running unsupported applications were also among the issues pointed by Ardent Solutions.

 

Of 250 IT execs surveyed, 19 percent said they were not able to make considerable IT investments for the past two to three years. Below 60 percent of business organizations kept lower than 250 employees who have strong disaster recovery plan. This results to poor backup processes for hardware and software. 

 

However, around 24 percent of the respondents acknowledged the benefits of software-as-a-service model. 

 

Ardent's managing director Andrew Watkinson said, “SMEs cannot afford to be left behind. "Many have already made a move towards leveraging external IT expertise for support, maintenance, outsourcing and advice. Making the move to SaaS is the logical next step: in addition to the cost arguments, this model provides organisations with guaranteed access to the latest technologies and up to date expertise.”