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February 20, 2012

Half of British SMEs buy unnecessary technology

Just under half of all British small businesses buy new technology without being certain that their businesses require it, and without any productivity gains.

By Vinod

A new report by Fasthosts Internet suggests that 48% of small businesses go out and spend up large on new technology without proving the business case. Only 25% of these firms consult IT professionals before making major purchases, and only 10% go back afterwards for IT help.

The report interviewed 788 SMEs on their technology buying habits, and found that while 35% of firms were implementing new technologies such as smartphones and tablets – alongside traditional upgrades – are finding little to no improvement in business efficiency.

Stephen Holford, Fasthosts sales and marketing director believes that small business owners are simply too busy to spend the time researching and ensuring that technology investments are well made.

"A lax approach to researching technology in relation to their needs can lead firms to waste money on solutions that simply do not perform".

According to Fasthost’s research, only 11% of UK small firms review whether a technology has worked well after introduction.

Some 74% of small companies surveyed believe that implementing new systems has not freed-up sufficient staff time. Fashosts believes this time could be spent on innovation otherwise. Furthermore, only 41% believe that staff find using technology to be enjoyable, and 1 in 5 firms employ staff who are actually frightened of receiving new technology.


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