IT spending drives innovation in downturn

A survey conducted by Micro Focus and CFO Research Services found that most CFOs and financial professionals will invest in existing IT systems to gain efficiency and increase innovation in the financial downturn.

The results indicate that most respondents are likely to invest in existing IT systems rather than to introduce new ones and CFOs and finance professionals view gains in efficiency and cost savings as the two most important measures of ROI for IT projects.

As organisations struggle to cut costs, IT has become a strategic differentiator and 45% of respondents view IT as a 'critical driver of value' or a function that 'actively contributes value'. And 71% of companies said that IT will play a very important or somewhat important role in their company’s competitive position following the economic downturn.

CFO of Micro Focus Nick Bray said: “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.”

He added: “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.”