PracticePeople In PracticeSmall business warning over wasted IT budgets

Small business warning over wasted IT budgets

IT budgets are beingsquandered on pointless projects, CIMA warned today.

Research carried out by CIMA reveals that manyorganisations – especially SMEs – are failing to justify their ITinvestments against the financial benefits derived.

70 per cent ofrespondents claimed their IT spend this year has been above average.

Tony Dart, CIMA Technical Director, said: ‘Thefindings of the survey are complex and surprising, given thatthe cost of IT equipment has dropped and capacity has risen.

‘Companies cannotbe spending wisely. An investment must – in the end – deliver a return.This is generally acknowledged except in the case of IT.

‘The difficulty for smaller businesses is that theydo not have the resources to assess their investments inadvance and so often make mistakes. He added: ‘Part of the problem lies with initiatives wheresmall businesses are encouraged to invest in IT but arenot neccessarily encouraged to look at the business case for doingso.’

Audit threshold raised to £1m – £4.8m threshold to follow

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