Advertisment

IT procurement: leasing, financing critical

author-image
CIOL Bureau
Updated On
New Update

FRAMINGHAM, USA: A recent IDC survey of 206 professionals responsible for IT procurement found that the availability of leasing and financing capabilities is a critical factor in the primary stages of product and vendor selection. The majority of IT organizations surveyed cited the availability of leasing/financing as critical in their consideration of a product vendor.

Advertisment

"Customers' wants and needs and providers' principle business objectives are in alignment. Customers want flexibility and choice in software and services financing while providers want business growth. The missing ingredient? Innovation and investment in financing products that offer greater value to customers" said Joseph Pucciarelli, research director, IDC's Technology Financing Strategies Service

Other key findings from the IDC survey include the following:

  • IT organizations have a surprisingly clear understanding of the operational, financial, and strategic benefits associated with IT leasing and financing, with 75% citing protection against obsolescence, the ability to shift costs between capital and expense budgets; and access to incremental capital all as important reasons to lease or finance.
  •  The need for significant service improvements in almost every aspect of the leasing/financing process: sales, billing, customer service, and end-of-lease resolution procedures were cited by a significant percentage of the survey participants.