Invest in IT during recession, say French SMBs

NEW YORK, US: Small and medium businesses in France are on track to spend $32B in 2009 on their overall ICT infrastructure, slightly down over 2008 due to the economic downturn. In fact, SMBs are more concerned about the economic climate as more than two out of three believe business conditions will get worse in the near future, according to a recent study by  Access Markets International (AMI) Partners, Inc.

Typically, the economic downturn for France SMBs translates into decreased revenue, restricted cash flow and inventory constraint. In order to diminish these effects, small and medium businesses are cutting expenses by reducing payroll costs.

Additionally, SBs tend to concentrate on reducing office supplies, while MBs seem to be focusing on lowering their telecom expenses, said the study.

To combat decreased revenues, both France SBs and MBs report that acquiring new customers and improving existing customers’ experiences is their main concern.

“To achieve increased revenues, these SMBs plan to invest in customer-focused business solutions software, such as CRM. This is part of an effort to understand what will encourage customers to purchase their wares during the recession,” said Pauline Courtiau, research analyst at AMI-Partners,

According to AMI, overall in Q3’09, France SBs have purchased more IT products than had been expected in Q2’09. Netbooks’ purchases have exceeded expectations, as they provide mobility and connectivity at a low price point. To a lesser extent, the same trend applies to France MBs for servers and networking products, as significantly more medium businesses have invested in these IT products to strengthen their IT infrastructure.

“Given the constant need to travel and meet potential clients or partners, France SMBs must be on top of their game when it comes to connectivity on the go, Hence, enabling greater mobility is a key technology investment among SMBs within the next 3 to 6 months,” added Courtiau.