Itís the perfect time to consider new IT investments

Dec 03 2012, 02:35 IST
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SummaryWhile financial markets are still volatile and uncertain, liquidity is still tight, and there is a shortage of funding, and higher funding costóthere is a glimmer of hope.

Sapan jain

While financial markets are still volatile and uncertain, liquidity is still tight, and there is a shortage of funding, and higher funding costóthere is a glimmer of hope. Enterprises big and small are getting more innovative to finance their IT, and looking for new financing sources and quicker return on investment (ROI).

The challenge is financing institutions are averse to unsecured loans. Many traditional sources of credit like banks are reluctant to fund IT, seeking additional collateral against loans and

financing deals. Besides, banks and brokers, generally do not possess sufficient IT industry knowledge to make accurate assessments of fair market values, and may cover their risk with increased financing rates.

Significantly, financing is one of the biggest challenges for SMBs today, often limiting their success. This is vital as India is estimated to have around a million SMBs, segmented into micro (1-10 employees), small (10-100 employees) and medium-sized (100-1000 employees).

Interestingly, given the changing technology landscape and growing business needs, SMBs want the same thing as large enterprise clients: value and innovation. They are also facing the same challenges as larger enterprises. What they lack is the resources to address those challenges.

The good news is with the economy starting to reboundósmall and mid-sized companies are central to the forthcoming recoveryóitís the perfect time to consider new and innovative IT investments to help businesses grow. How can they preserve cash for core business needs while gaining a competitive edge? How can they harvest better ROI while keeping competitive edge? Can they spread out payments over time, and have flexible payment terms to match their unique budget requirements? How can they finance IT?

Finding the right answers to the above questions and embarking on the right strategy can spell the difference between success and failure. Smart CFOs break the code to improve the ROI and advance smart financing solutions, including leasing options to acquire technology even during the tough times. These decisions today would be seen as pivotal in positioning their companies for growth during the inevitable rebound in the global marketplace.

By financing their IT investments, enterprises of all sizes can increase their efficiency, and better manage cash flow and assets, by turning large upfront costs into affordable monthly payments. This helps accelerate their ROI, and preserve cash and credit lines for core business requirements.

From financing green datacentre to providing environmentally-compliant disposal of retired IT assets, smart IT financing can help

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