Businesses lacking confidence in IT investment

Forty per cent of UK businesses are not planning to invest in new IT systems over the next 12 months, according to new research.

A further 39 per cent say that although IT is valuable to their business, some of their investments have been a waste of money. This figure rose to 54 per cent for companies with between 50 and 250 employees, says the Sage Heartbeat Survey conducted by YouGov.

The trend was also evident in companies as they grow older. Only 31 per cent of companies less than a year old say that some of their investments have been a waste of time, compared to 40 per cent for companies over 20 years old.

'It is rather worrying that such a significant proportion of UK businesses are not planning to invest in IT over the next year, given the supposed buoyancy of the market over the last 12 months,' said David Pinches, head of product management, Mid Market Division, Sage (UK).

When asked who they would go to for advice about IT equipment and services, top of the list came other business owners (40 per cent), with IT consultants placed second (37 per cent).

Eleven per cent of companies under a year old commented that IT was moving too quickly for them, which rose steadily upward to 18 per cent for companies over the age of 20.

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Further Reading:

Predicted rise in IT spend reflects a new optimism

IT execs fail to prove their worth

IT spending escapes slowdown shackles