19 May 2009
IT leaders must look into alternative cost-cutting routes other than reducing staff that will be needed to help companies weather the downturn, according to research.
As business imperatives focus on cost savings, more than a third (37 per cent) of 550 UK technology managers surveyed said staff reductions will be the main cost-containment strategy, chosen over other possible solutions or seeking external advice.
Some 75 per cent of businesses surveyed are under pressure to reduce IT spending immediately or within the next six to 12 months. As a consequence, three per cent of managers are expecting reductions in their internal service level agreements (SLAs).
Despite this, 42 per cent of those polled thought IT would be instrumental in supporting their business during the credit crunch, only 25 per cent saw helping increase revenue as an objective for the department and only 35 per cent were focused on customer satisfaction.
“Without focusing on impacting revenues and increasing customer satisfaction, IT departments risk missing out on a once-in-a-generation opportunity to get away from being seen just as a cost centre,” says the study.
“They must present themselves to the board not only as delivering intelligent cost savings in the short term, but also as leading innovation that will underpin a successful strategy during the upturn,” it says.
The research was commissioned by supplier Affiniti.
Now, more than ever, organisations need to be proactive in many areas of the business ? most notably the back office. Companies need to invest intelligently in the right software upgrades that address today's areas of pain: cash flow and credit control.
By adopting electronic payments and electronic document delivery, for example, organisations attain immediate cost benefits, streamline back-office processes, significantly reduce overheads and improve business understanding. By automating these processes organisations can not only improve credit control at a critical time but also drive down debtor days and achieve far more accurate revenue recognition.
The use of electronic document delivery ? for invoices and statements ? provides new levels of financial control. By avoiding reliance on the postal services, invoices are delivered earlier and with payments being made electronically, there is no longer a "cheque is in the post" excuse.
Organisations can now use this information to undertake proactive credit control ? targeting specific customers for payment and gaining early insight into potential payment problems.
Technology continues to evolve at an extraordinary pace, therefore it is essential that organisations consider just how these advances could be put to use to create a more sustainable business. Improving back-office systems during these uncertain times could mean the difference between insolvency and the survival of a sustainable business.
Yours sincerely,
Adrian Stafford-Jones
Managing Director
Albany Software
www.albany.co.uk
Posted by: Adrian Stafford-Jones 19 May 2009
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