{"id":263,"date":"2021-04-05T18:42:31","date_gmt":"2021-04-05T16:42:31","guid":{"rendered":"https:\/\/onelink-dev.econocom.com\/uk\/?p=263"},"modified":"2021-08-02T11:23:26","modified_gmt":"2021-08-02T09:23:26","slug":"how-companies-are-shifting-their-it-investments","status":"publish","type":"post","link":"https:\/\/onelink-dev.econocom.com\/uk\/2021\/04\/05\/how-companies-are-shifting-their-it-investments\/","title":{"rendered":"How companies are shifting their IT investments"},"content":{"rendered":"
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COVID-19 has been the greatest challenge the world has seen in decades, resulting in a dramatic acceleration in the need for digital transformation. Companies had to react quickly and switch to remote working, without all the necessary capital and human resources in place.<\/span><\/p>\n

Unforeseen investments, including laptops, apps, cloud computing and security, have had to be generated. Due to declining revenues, fixed costs and deferred payments from customers, lack of cash has become a big problem.<\/span><\/p>\n

In light of the cost pressure due to uncertain business and economic conditions, more and more companies are opting for \u201cas-a-service\u201d models and moving to OPEX for their IT investments.<\/span><\/p>\n

Immediate need for digital transformation since the pandemic<\/strong><\/span><\/p>\n

To strive in this economic downturn, companies were forced to fast-track their digital transformation efforts. A\u00a0survey<\/a>\u00a0by Gartner in September 2020\u00a0found\u00a0that 69% of the board of directors accelerated their digital business initiatives.<\/span><\/p>\n

Technology driven companies have been leading the path to a faster recovery.<\/span><\/p>\n

To meet employees\u2019 needs and customers\u2019 demands, IT and Procurement leaders should continue transforming their operating models and investing in key enablers, such as cloud computing, intelligent automation, artificial intelligence, blockchain, and advanced data and analytics.<\/span><\/p>\n

A\u00a0recent report<\/a>\u00a0from IBM shows that 36% of business executives now assign high or very high priority to digital transformation compared to 17% in 2018. In 2022, this percentage is predicted to reach 62%. Another study by\u00a0Nasscom<\/a>, reports that more than 70% of CIOs are prioritising digital spend and moving to OPEX. In 2005, IT expenditure was 34% CAPEX vs 66% OPEX compared to 24 vs 76% in 2019-2020.<\/span><\/p>\n

Cash is king and the emergence of as-a-service models<\/strong><\/span><\/p>\n

Having a favourable cash flow is particularly important in times of economic decline, when credit is harder to obtain. If a business can continue to ensure the regular inflow of liquid capital whilst controlling costs, it will be much better placed to ride out the storm of lower sales. In this context, the Device-as-a Service (DaaS) model of acquiring hardware by paying rental payments over time to preserve cash reserves is gaining significant traction in the technology sector.<\/span><\/p>\n

Below are the main advantages given by the DaaS model:<\/span><\/p>\n