IT Failing One in Four SMBs - ITEI

The IT Effectiveness Index (ITEI) Mid-Year Report 2009 recently conducted an online survey to measure IT effectiveness at small businesses. The survey states that almost one in four respondents score a “D” or “F” grade when it comes to IT effectiveness.

 

Due to the recession, many SMBs were forced to cut down on their IT spending to save costs, according to the report, while many other companies have put the IT projects on hold and are concentrating on surviving in the market. The IT effectiveness survey provides a benchmark to such companies to understand where they need to improve to be competitive.

 

The survey states that nearly half the businesses are facing problems in executing new IT projects because of cuts in capital investments. Also, nearly one-third lack the staff to properly manage their IT investments, states the survey.

 

“The results to date indicate that many small businesses are falling behind when it comes to implementing accepted best practices for IT operations and management,” according to Steven Kahan of The Planet, one of a consortium of sponsors behind ITEI. The IT Effectiveness Index is telling us that in nearly two-thirds of businesses with 100 employees or less, IT operations are failing to fully support the small business needs.”

 

Helping SMBs to explore best practices and affordable options and alternatives for improving or maintaining effective IT standards, the ITEI program offers a free online benchmarking tool. it also provides survey participants with free peer comparisons based on company size and industry. The participants will also have a chance to examine their results in more detail through a personalized report.

 

An IDC (News - Alert) survey released in last December states that the economic downturn in the U.S. is affecting the priorities and plans of the small and medium business (SMB) for technology acquisitions. According to the survey, 38 percent of small firms and 42 percent of medium-sized businesses are expected to delay or reduce IT spending. This impact is observed to be intense with variations by company size, industry, and attitude segment.