To keep up to speed with the rapidly changing ICT technology businesses are increasingly choosing leasing over owning.But this move must be strategic to maximise the economic benefits, says technology specialist leasing company Equico.Almost half of all N
To keep up to speed with the rapidly changing ICT technology businesses are increasingly choosing leasing over owning.
But this move must be strategic to maximise the economic benefits, says technology specialist leasing company Equico.
Almost half of all New Zealand businesses currently lease their Information Communication Technology (ICT) equipment with further 36% saying they would consider doing so, according to independent research commissioned by Equico.
Equico managing director Paul Beattie told the National Business Review businesses saw the main benefits of leasing IT equipment as the ability to upgrade easily (42%), cashflow benefits (35%) and being economical (31%).
“The constant change in the technology sector naturally lends ICT equipment to leasing rather than owning.”
The survey also revealed the ICT sector is recession-proof. Three-quarters (71%) of businesses had not put off investing in ICT technology due to the current economic environment.
“It really confirms that the IT equipment is an integral part of a continuing business. It’s probably become, if anything, more important during the difficult economic times.”
Mr Beattie said while leasing can be less costly for companies it has to be a well-planned strategic move.
While nine out ten respondents said they invested in ICT as a means to increase productivity and create efficiencies, more than a third confessed they had invested in IT equipment that they did not use, or did not use optimally.
“It is a little surprising but that is the case and you’d have to wonder what would motivate companies to want to invest in that equipment without knowing what they going to do with it, said Mr Beattie.
“We’ve discovered that some of the bigger groups, particularly in the retail sector, don’t have a concise ICT strategy. And in a lot of instances they’re not quite sure what they’ve got around the country.
“We try to advise them to look at their total asset base and then break down the ICT component of that. And then [decide] what they should buy out of their own resources and what they should lease.”
Mr Beattie said to get the best value out of leasing, companies need to ensure the ICT equipment they are planning to rent is integral to their business and it is necessary to be able to renew it every three years.
“If it’s something that they don’t need too often or they going to keep for seven years then they are really best to pound that out of their own resources.”
