24 Feb 2009
UK businesses spent more on hardware and software in the last three months of 2008 than at any period of the year – despite the worst of the recession setting in at the same time.
The official Office of National Statistics (ONS) figures for business investment last year show that computer software and hardware accounted for 9.75 per cent of all spending in the private sector during the final quarter.
Software spending of £1.7bn was down slightly on the £1.8bn figure from the same period in 2007, but contributed to an annual investment of £6.5bn that was up from £6.3bn the year before.
Fourth quarter hardware spending was also £1.7bn, which was the same as the 2007 figure, although in total for 2008 the investment of £6.5bn was slightly down on the previous year’s £6.6bn.
The ONS report shows that UK IT spending held up far better than other sectors.
Overall business investment in all areas of spending during the final three months of last year was down 3.9 per cent from the previous quarter and 7.7 per cent on the same period in 2007.
Dear Editor,
Now that the recession is properly upon us, it's crucial that businesses spend every penny of IT investment on products that deliver real business value and absolutely fit their requirements. Keeping the cash flowing will keep businesses afloat and investing in software that facilitates electronic payments and direct debits should be at the top of every business' shopping list. These will prove essential in managing supplier payments and customer collections - but only if they are secure and robust.
While this is not a time for slap-dash spending, it is also not a time to cut corners. Control over payments and collections is paramount and a Bacs approved system is essential. There is never any point in spending money on a system that doesn't work. To do this now could be fatal to business.
Electronic financial packages provide solutions that allow same-day payments, reduce transaction costs and decrease data errors. Business owners can relax, knowing that monthly payments will be automatically collected by Direct Debit (DD) on a date agreed at the outset of negotiations. From the start of contract, the business owner is in control of collecting payments, eliminating the need for endless cheque chasing.
Astonishing numbers of business owners are still entrenched in archaic processes that stall business and add to the already bleak international picture of a recession.
Yours sincerely,
Adrian Stafford-Jones
Managing Director
Albany Software
Tel: +44 (0)1420 547620 Fax: +44 (0)1420 547621
Post: Albany House Albany Software Ltd, Albany House, Omega Park, Alton, Hampshire, GU34 2QE
Web Site: http://www.albany.co.uk
Posted by: Adrian Stafford-Jones 24 Feb 2009
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