SMEs to increase tech spend as confidence in the economy returns
Up to 70% of UK small to medium sized (SME) businesses expect their IT budget to increase in 2014, according to independent research by data centre and communications specialist, Node4. The survey of 250 IT decision makers in companies between 50-500 employees, revealed that 1 in 10 SMEs expect their IT budget to grow by more than 10% next year, with only 5% anticipating a cut in technology spend.
Increased faith in the UK economy is prompting this return to IT purchasing. 80% of those interviewed agreed that they expect their business to do better in 2014 than in previous years. As a result, SMEs are thinking about how IT can better support their business.
Over a third of respondents revealed that they have concerns about the limitations of their current IT infrastructure and a further 52% admitted that the failure of IT to deliver posed one of the biggest threats to their business next year.
“When the economic hard times kicked in over the course of 2008, IT budgets were one of the first casualties. SMEs clamped down on spending, most only upgrading or changing their IT when they had to,” commented Paul Bryce, Business Development Director, Node4.
“Our findings are reflective of recent forecasts by bodies like the CBI and the Centre for Economics and Business Research that the UK economy is set to grow, and SMEs are once again investing in their core businesses. However, SMEs spending habits have changed. IT managers and directors are even more savvy than before. All those with purchasing responsibility today want an IT solution that helps them to win more business, beat the competition and prosper in the growing economy.”
When asked what they would spend their additional IT budget on, nearly a third said they would invest in mobile application development, and 1 in 5 would move their entire IT to the cloud.