Firms warned against cutting small business software investment

Businesses are being advised not to cut their IT investments during the recession.

If they do not keep up with new technology such as small business software they may find it difficult to survive the economic downturn, warns Michael Dean, head of marketing at the National Computing Centre.

He points out that IT investment allows organisations of all sizes to reduce costs and improve performance.

"The danger in a recession is that organisations don't invest in IT and when the upturn comes they are less competitive than others," Mr Dean stated.

IT research and advisory firm Gartner also urges IT leaders to prepare for the end of the recession sooner rather than later.

Firms should have a business growth plan in place by the end of this month, it advises, with a focus on identifying new revenue and profit opportunities.

Waiting until business picks up will be too late to make IT investments, warns vice-president Ken McGee.

Small Business Management Software from Atlantic Global OnDemand.

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