TECHNOLOGY: Still Feeling Effects Of The Recession
Recent Western Cape Business News
- V&A Waterfront Rewarded with Heritage Platinum Status
- Award-winning Township Entrepreneur Heads Off to the US for a Magical Book Tour
- Western Cape Government is Driving Entrepreneurship Awareness Campaign to Highlight Support Offered To New and Emerging Businesses.
- Your Staff Need to Understand How To Mind your Business
- 11m Euros invested in the South African MeerKAT Radio Telescope Project
These were some of the findings to emerge from a MTN Business survey that was undertaken to ascertain what corporate SA are thinking with regards to IT innovation, and maintenance as well as the apparent business related benefits. The sample was drawn from key MTN Business clients across business sectors and targeted CEOs, CIOs and IT Managers.
Says Angela Gahagan, executive of MTN Business; “The projected spend for 2011 does show a recovery from the recession. This, coupled with the fact that almost 90% of respondents view telecom investments as essential to business validity, indicates that future investments will not be placed on the ‘backburner’ any further. Where this spend will be allocated, however, is a totally different story!”
Despite almost 89% of respondents justifying their telecoms spend on the (the product’s) ability to differentiate their business offerings, only 39% of respondents had a positive sentiment (need to innovate) towards IT/Telecoms spend in 2011. 37% upheld a neutral stance (to maintain and refresh telecom infrastructure where necessary) and 24% stated they need to ‘hold back’ on any investments and continue to save. MTN Business believe this is a conundrum in itself, especially considering that innovative technologies allow the differentiation of business offerings and most respondents (94%) agreed with Gartner’s outlook on the significant link between IT innovation enabling effective CIO decision making (with 61% already seeing and reaping the benefits).
Continues Gahagan; “We are certainly not surprised by this conundrum if one considers the impact of the global recession then it’s only natural for recovering businesses to exercise caution on any spend going into 2011. Although less than half of businesses will be actively driving innovation strategies, an equal percentage believe that a year or two of consolidation will not hinder their ability to ‘catch up’ on IT innovation, and both these outlooks are positive for industry recovery and growth.”
Although sentiments are mixed, most respondents agreed on solution focus areas as priorities for their budget spend in 2011. High on the list in terms of telecom spend included voice and data communications (approximately 30%) with networking (28%) and cloud-based services (27%) following respectively.
“These are actually high investment figures for a recovering global economy and MTN Business believe it’s the approach and attitude of itself and other service providers that will make or break the growth and development of telecoms locally in the short term,” adds Gahagan. “We must be ready to assist customers on both innovative and maintenance strategies, and urge our competitors to have a similar outlook, if we are to minimise the effects of the recession and maximise customer innovative priorities in the coming years.
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