Businesses Seeking Wise IT Investment

 

According to statistics released by many research agencies, Vietnamese enterprises do not pay much attention to IT investment. The degree of IT investment depends on sectors. In general, IT investment accounts for some 0.1 % of total revenues and 10 % or less of total expenditures. According to a survey, only 6 % of 5,000 surveyed enterprises invested more than 15 % of total expenditures on IT while the global rate is 1 - 2 % of total revenues and 20 % of total expenses. Vietnamese enterprises spend up to 60 % of IT budgets on equipment and hardware and 10 - 11 % on software and services while the global rate of investment for software and services takes up 49 %. Spending on IT training by Vietnamese enterprises is equal to only 4 - 5 % of total IT budgets. The spending on hardware and equipment surely increases fixed assets but unsurely enhances operating efficiency.

 

However, for financial institutions, banks, securities companies, insurers and e-commerce companies, IT is the vitality and their investment for IT is quite big. They have both short-term and long-term investment plans. Their spending on network security usually accounts for some 10 % of total IT budgets.

According to experts, enterprises should not reduce IT investments but re-examine their systems to make wise investments. First of all, they should spend time on reviewing operating efficiency of existing IT systems and utility of IT resources to boost operating efficiency and reduce investment and maintenance costs. For instance, they need to examine storage capacity, delete replicas and restructure resources to optimise storage. They should invest more on IT training and encourage their staffs to capitalise on existing IT resources to cut operating expenses. They should also carefully consider IT products and services. Many purchase devices or software for some purposes but have to pay for a number of unneeded features. They also examine their units and branches to avoid replicated investments.

 

According to experts, enterprises with long-term plans and strong capacities should invest in IT systems at this moment to prepare for the revival of the economy.