30 Jul 2009

Companies 'should not cutback on IT investment'

Businesses could be making themselves less competitive by refusing to invest in IT infrastructure in order to make short-term savings, it has been claimed.

Mike Dean, a spokesperson for the National Computing Centre, said that firms should weigh up the long-term impact of failing to invest in data security and storage upgrades for IT infrastructure, as failing to do so could leave them behind their competitors in the future.

He commented: "Whilst [cutting back] will help cash flow and short-term profit and loss reporting, purchasers will be forced to bite the bullet at some stage."

Mr Dean added that many IT vendors could be in for a shock, however, as more companies turn to outsourced IT suppliers for their hardware needs.

A recent report by the Organisation for Economic Co-operation and Development revealed that in May and June this year investment in IT and communications hardware increased for businesses across the UK.