BT Wholesale

INDUSTRY NEWS


4 June 2009

Businesses 'unlikely to increase ERP spending'


UK-based firms are unlikely to boost the amount of money that they spend on enterprise resource planning (ERP) this year.

That is according to IT market intelligence provider IDC, which has noted that companies only tend to increase their outlay on ERP if they think they will expand.

Bo Lykkegaard, program director - European enterprise applications at IDC, explained that firms would be more likely to put the money into "investments that will yield payback, even in a contracting or slow growing business" during the recession.

Mr Lykkegaard said: "Some ERP investments are made to streamline and automate back office processes and prepare for growth.

"For that type of investment, the payback comes in terms of profitable growth."

However, he added that businesses which are struggling during the economic downturn would be likely to reduce their spending on "scalable administrative infrastructure" like ERP.

© 2006 Adfero Ltd.

MORE INDUSTRY NEWS