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The Catch Up Game
Normally I post about tech trends, but today I want to talk about what appears to be the beginnings of a business trend in the Puget Sound area. The fact is, the gloom seems to be lifting, and IT spend is coming back into the market at levels not seen for a while. Granted, much of this is driven by projects held off for, in some cases, several years too long, but the fact is, the economy no longer feels as much like the great black hole that may swallow businesses whole, and pragmatism is taking hold.
It is very difficult to know in real time where the bottom of an economy is, and when we are heading up or down, but at the end of the day, there are things we have to do to keep the doors open such as pay our employees, pay rent, and keep our computing infrastructure running. And more importantly, there comes a time when we realize that we don’t just want to keep the doors open, but we want to grow and thrive.
My experience is that many smaller businesses stretched their dollars by holding back on IT spend by holding off on upgrades and routine maintenance. This generally has little impact in the short term, but has an increasingly growing cost the longer you wait. As it has become increasingly evident that, while the business environment is challenging, it is still driven by the same requirements it always has, and putting off investment will hobble growth, productivity, and competitive advantage.
Due to this, project spend is on the rise, and rather rapidly. It’s the old catch up game as businesses realize that they are overdue for moving off of XP, for moving off of old versions of Microsoft Server or other core applications, and for updating hardware, upgrading networks, etc.
As all of this pent up demand hits the market, it becomes a bit of a feeding frenzy for qualified resources. As you plan for getting the help you need to catch up in IT, ask yourself a few key questions:
- Am I ready to increase my fixed costs in IT, or should this be variable project work?
- If I am ready to increase long term fixed costs, how do I do so in a way to maximize the quality of support and quantity of support I get for that spend?
- Have I kept up on technology offerings to the extent that I can make solid decisions regarding upgrades, changes, and purchases to ensure I don’t waste any money short or long term?
Make sure that you invest in IT the same as you would invest in any other aspect of your business; thoughtfully, carefully, and with foresight and after doing your homework.
This is a great time to slow down a bit and assess where you are in regards to your technology and your business needs. Slow down long enough to develop a plan for your IT spending and make sure you evaluate options. Otherwise, working from old upgrade plans may bring about wasting money on plans which are no longer appropriate from a business and technology standpoint.
It’s been great to see more energy and enthusiasm about IT spend, as it is part of a general increase in confidence in business, and often goes hand in hand with hiring. Just make sure you step back and validate your plans and realize that a small investment in planning now may save you a lot of money over the next few years, and, if in doubt, call us and ask for help!
Happy Computing!
Richard Brunke
