IT spending in the UK is likely to be affected by the current climate of economic uncertainty following the Brexit vote. Independent analyst company Canalys is cutting its IT spending forecast for the UK by 10%, with the expectation that the UK’s uncertain trading future with the EU will have an immediate impact on what companies plan to spend on their IT. But if businesses are watching their IT budgets closely, can outsourcing IT save them money?
Reducing Risk: Cyber Security and Business Continuity
We are entering a period of potential outcomes, with the unprecedented decision to leave the EU making the true extent of the economic outcome unknown. But this uncertainty itself has consequences. Already the pound has fallen on foreign exchanges and continues to be volatile. This is important for the IT sector, with technology prices rising due to higher import costs.
Already new activity is on hold while businesses wait for rates to stabilise. Companies are now likely to cut IT expenditure to reduce risk, and may set lower budgets for the future if the outlook continues to look tough.
There is the question about how optional IT really is though. Companies may cut back their spending, but they will still need IT support and services, particularly around issues of cybersecurity and business continuity.
Is Outsourcing IT Services a Strategic Solution?
Across business sectors, outsourcing is more than simply a tactic: it is an essential element in remaining competitive. It can increase competitiveness and productivity and it is used as much as a strategic tool as it is for cost saving.
IT outsourcing offers businesses flexibility, and a way of employing skills they might otherwise not be able to afford to recruit for directly.
Quality remains a discussion point: but quality does not have to suffer providing the business sources the right outsourced IT supplier, and puts the right measures in place to manage the relationship.
With IT services in particular, trust is vital. Saving money and time will only work if the IT supplier can be totally relied upon. Support should be both accessible and continuous.
San-iT provides essential IT services in Manchester and throughout the north west. We understand how our clients rely on us to provide the equivalent service level of an embedded, in-house team. We’re confident that our trusted level of service can give businesses the breathing space they need to consolidate their strategy and expenditure.