Rising tech spend showcases its importance to UK SMEs
Spending on technology by UK SMEs will increase by £8 billion in 2014, a 54% increase on 2013, according to new figures.
A survey of more than 2,000 businesses by GE Capital found that total technology spending will total £22.8bn in 2014.
The need for this rise in technology spending showcases the importance of staying ahead of the competition in the business world.
Sales of IT hardware, software and office equipment are all expected to increase according to the study, with results published in a report from website CRN.
Technological infrastructures are the driving forces of many companies, especially regarding aspects such as supply chain management and expenditure.
Spending on technology does require some care though as it could place exceptional pressures on business finances if funds are in short supply.
In these instances it is important to weigh up both the positive and negative aspects of a switch before deciding upon the best course of action.
Should finances become more of an issue, seeking insolvency advice and business management help at an earlier stage can increase the likelihood of protecting the company in the long-term.
Markets for cloud computing services are increasing, making the handling of large data sets easier and increasing the efficiency with which companies can work.
At the same time, embracing social media and networking can also benefit businesses with regards to branding, advertising and marketing – all of which is driven by technology.
Many business processes are changing and these changes are occurring as a result of improved computing capabilities.
As a result, technology spending is helping to increase the options available, although it also a wise move to review existing systems before deciding on a complete overhaul.
Many aspects of technology are perfectly capable of carrying out their designated tasks and do not need additional expenditure to improve or replace them.
However, should it be deemed to be in the long-term interests of the company then the benefits over a period will likely justify such spending.
By Phil Smith