Published on the 11/11/2009 | Written by Newsdesk
Survey finds CFOs are demanding efficiency gains and cost savings from IT initiatives, and modifying existing systems is often the preferred option…
A survey of CFOs has found spending on technology is holding up despite the impact of the global financial crisis, although those holding the corporate purse strings are now more likely to invest in modifying existing IT systems rather than buying new technology.
The survey, aimed at examining the link between finance and IT during the current economic downturn, was commissioned by enterprise application management company Micro Focus. It says the results indicate a willingness from financial professionals to invest in existing IT systems, revealing that organisations are far more likely to modify existing systems than introduce new ones given the global financial climate.
According to the survey, financial professionals view gains in efficiency and cost savings as the two most important measures of ROI for IT projects – areas that can be addressed by application modernisation.
As organisations have focused on strategies to cut costs during the recession, IT has emerged as an important strategic differentiator. According to the survey, 45 per cent of respondents view IT as a “critical driver of value” or a function that “actively contributes value.”
Additionally, 71 per cent of respondents indicated that IT will play a very important or somewhat important role in their company’s competitive position following the economic downturn.
“It may have taken a global economic disaster to underscore the value of IT assets as a strategic differentiator, but organisations increasingly recognise the value IT can deliver to the bottom line,” said Nick Bray, CFO of Micro Focus.
“Now that companies have trimmed more of the fat across their organisations, investment in existing IT systems stands out as a cost effective means to achieve competitive advantage. Smart organisations are aware that sound technology decisions can not only help reduce costs, but drive innovation.”
The survey also reveals that 34 per cent of organisations have seen increased collaboration between business and IT during the economic downturn – a development that will enable companies to build strong IT foundations capable of supporting evolving business goals.
