Technology Spend Important, Despite Tight Capital

Posted on November 12, 2008
Filed Under Business Effectiveness |

With the uncertainty of the current economy, most businesses are tightening their belts and cutting money out of their budgets for capital expenditures. Although on the surface cutting costs seems like the practical, correct coarse of action, it can also prove detrimental when it affects the effectiveness of business operations, efficiency and product quality. This is especially true in regards to software systems and IT infrastructure, which can give businesses an edge when staff is cut and marketing and new business development expenditures are reduced.

Don Brown, founder and CEO of Interactive Intelligence, explains in this month’s Chief Executive Officer how upgrading legacy systems can improve performance despite the tough economic conditions:

“With so much talk about recession and cutting costs, it’s no wonder there are so many fears surrounding capital spending. According to a study conducted by Forrester Research, 43% of large US and European businesses have cut their overall spending on technology products and services this year.

“Many companies feel that reducing their capital spending is the best way to beat the economic downturn. This means that plans to update or replace legacy systems could be shelved with the attitude that companies will weather the storm before making any major financial investments.

“However, with outdated equipment firms will struggle to deliver results and with a recession forecast and the threat of job cuts ever-present, can they really afford to make do with a second-rate solution?”

Read the full article: “Intelligence to Beat the Downturn.”

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