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Companies still investing in IT for competitive advantage, Equico research shows

Almost three-quarters (71%)  of New Zealand businesses are continuing to invest in Information and Communications Technology (ICT) in the current economic environment, in a bid to achieve productivity and efficiency gains.

Encouragingly, 74% of respondents in a survey into leasing ICT equipment and services, commissioned by Equico, said that their ICT budgets had remained the same or increased in 2010.

However, exactly where this capital investment is being put to use is less clear for some businesses, with over a third of CEOs, CIOs and CFOs surveyed reporting they are unsure of or don't know how much capital their business has tied up in ICT.

What's more, over a third of respondents say their business invests in ICT equipment which is not currently used or is not being used optimally and 20% of companies do not have a clear upgrade path for existing equipment.

"With the majority of New Zealand businesses spending up to $100,000 on ICT equipment every year, it's a concern that some senior executives don't know how much their business is investing in this area," says Paul Beattie, Managing Director, Equico. "Having a clear idea of the company's ICT spend and a smart, strategic plan for making the most of it can ease the pressure many businesses are feeling and offer a real competitive advantage.

"Leasing equipment can offer companies a more cost effective way of ensuring they have access to the latest technology. The company can enjoy all the productivity benefits up front without a large capital outlay, so cash flow is not impacted. What's more, in certain instances leasing can offer tax advantages, bringing further cost savings."