Business Trends

Economic Recovery Spending Could Flow to Information Technology

In Uncategorized on September 22, 2009 at 7:15 pm

As the economy improves, chief financial officers (CFOs) will look to bolster their information technology (IT) systems, a new survey suggests. When asked where they are most likely to place their investment dollars when a recovery occurs, 40 percent of CFOs interviewed cited IT.

The survey was developed by Robert Half Management Resources, the world’s premier provider of senior-level accounting and finance professionals on a project and interim basis. It was conducted by an independent research firm and includes responses from 1,400 CFOs from a stratified random sample of U.S. companies with 20 or more employees.

CFOs were asked, “In which one of the following areas are you most likely to invest once the economy improves?”  Their responses:

New or upgraded IT systems ………………….. 40%
New products or service lines ……………….. .18%
New locations or real estate ………………… …14%
Mergers or acquisitions …………………………..6%
None, will not invest ………………………………19%
Other ……………………………………………………2%
Don’t know …………………………………………….1%
                                  
“As companies emerge from the recession and become more profitable, they will begin to focus on shoring up critical business applications and technology infrastructure,” said Paul McDonald, executive director of Robert Half Management Resources. “While finance executives may remain cautious about making bold new expenditures, they understand that updating their IT systems can help improve risk management, increase operational efficiency and ensure regulatory compliance.”

McDonald noted the survey showed that the largest companies (1,000 or more employees) are most likely to invest in new or upgraded IT systems (48 percent) because of the economies of scale that come from making systemwide improvements.

He added, “IT investments encompass not only hardware and software but also reflect the human resources necessary to manage these initiatives.”

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