Survey: CFOs to Spend on Existing IT Systems to Reduce Costs

Chief financial officers around the world are willing to invest in existing IT infrastructures, suggesting that organisations are far more likely to modify current systems than implement new ones given the global financial climate, reveals a report prepared by CFO Research Services in collaboration with Micro Focus.


Launched in August this year, the "Road to Recovery" survey polled senior financial executives in Asia (which contributed 33% of respondents), Europe (34%) and North America (31%).


According to the report, financial professionals view gains in efficiency and cost savings as the two most important measures of ROI for IT projects – areas that can be addressed by application modernisation. As organisations have focused on strategies to cut costs during the recession, IT has emerged as an important strategic differentiator.


The survey also finds that 45% of respondents view IT as a “critical driver of value” or a function that “actively contributes value.” Additionally, 71% of respondents indicated that IT will play a very important or somewhat important role in their company’s competitive position following the economic downturn.


“It may have taken a global economic disaster to underscore the value of IT assets as a strategic differentiator, but organisations increasingly recognise the value IT can deliver to the bottom line,” says Nick Bray, CFO of Micro Focus. “Now that companies have trimmed more of the fat across their organisations, investment in existing IT systems stands out as a cost effective means to achieve competitive advantage. Smart organisations are aware that sound technology decisions can not only help reduce costs, but drive innovation.”


The survey also reveals that 34% of organisations have seen increased collaboration between business and IT during the economic downturn – a development that will enable companies to build strong IT foundations capable of supporting evolving business goals.


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