IDC: SMBs in NZ will invest in IT instead of increasing headcount

IDC: SMBs in NZ will invest in IT instead of increasing headcount

An IDC report says lack of resource and current financial climate is forcing SMBs to focus on productivity enabling IT.

A report from market research firm IDC says New Zealand small and medium businesses (SMBs) are choosing to invest in IT infrastructure instead of hiring as many new staff. The report, New Zealand SMB Market Analysis and Forecast, 2010-2011, says SMBs (companies with less than 500 employees) face similar IT challenges to large businesses, but due to resource constraints are seeking innovative solutions to increase productivity with technologies such as social collaboration platforms.

“We expect that instead of increasing headcount as business revenues resume growth, SMBs will invest more in productivity-enabling technology,” says Louise Francis, senior market analyst at IDC New Zealand.

According to IDC, the New Zealand SMB sector accounted for 48.2 percent of business IT investment in 2010, worth over $2.4 billion. IDC forecasts it to reach $2.9 billion by 2015, a compound annual growth rate of 4 percent per annum.

IDC says it expects mobile technologies to play an important role in IT investment for SMBs, with over half planning to deploy mobile business applications in the next two years.

Francis warns that many SMBs are not prepared for the consequences of enabling mobile technologies in their businesses, particularly around risk management and security. She says this is an opportunity for vendors to provide new service solutions.

“As the number of devices and mobile applications proliferate, the need for effective device management solutions will grow, providing an opportunity for service providers to offer this service,” says Francis.

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