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Research shows ICT leasing on the up

Nearly half of New Zealand businesses are choosing to lease their Information and Communications Technology (ICT) equipment, according to independent research commissioned by Equico.

The survey of C-level executives in New Zealand found that 42% of companies lease ICT equipment currently. Respondents report the main benefits of leasing IT equipment as the ability to upgrade easily (42%), cashflow benefits (35%) and being economical (31%). Of those that do not currently lease IT equipment, more than a third said they would consider doing so in the future.

"The constant change in the technology sector naturally lends ICT equipment to leasing rather than owning it. Leasing delivers substantial cost savings and capital can be invested elsewhere in the business," says Paul Beattie, Managing Director, Equico.

"While the potential tax advantages of leasing vary from business to business, many of our customers tell us this is another reason why they choose to lease equipment. We'd recommend businesses speak to their accountant to see if leasing IT equipment offers any potential tax advantages to them."

Not surprisingly, nine out of ten respondents said they invested in ICT as a means to increase productivity and create efficiencies.

"Looking forward, businesses have reaffirmed the importance of having the right ICT tools, with three-quarters saying that their ICT budgets would remain the same or increase next year."