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IT cuts 'a threat to competitiveness'
IT News |
Businesses which cut back on IT spending during the recession face being less competitive than their rivals once the recovery begins, according to one expert.
Michael Dean, head of marketing at the National Computing Centre, explained that firms can actually use technology to reduce costs and improve performance.
However, businesses that view IT as a luxury to be cut back on when times get hard face a rude awakening, he warned.
"The danger in a recession is that organisations don't invest in IT and when the upturn comes they are less competitive than others," Mr Dean said.
He also advised firms not to cut the amount of training they offer existing IT staff as this will reduce the overall effectiveness of their technology spend.
Earlier this week, research by market intelligence firm IDC revealed that the IT services market will contract by 0.6 per cent this year.
However, the longer-term trend is for a return to growth.
Posted by Jon Aspinell.
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