More than 40% of small and medium-sized businesses that use hosted or cloud technology reported revenue rises of 30 % or more while 90 % of respondents not using hosted technology saw decreases in revenue.
Microsoft© 2010 Index
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Houston Technology Services - Economic Downturn

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In times of economic uncertainty business owners fear unexpected issues with regard to capital investments such as managed IT Support. We have addressed these problems and offer ways business executives can build capacity using Houston technology services to withstand the unexpected and reinvent strategies as circumstances change.

Issue # 1: Budget Forecasting

When times are tough, business owners must think ahead to know how to plan for the future. Unexpected issues force the business owner to mobilize the limited resources they already have. Companies must build the capacity to expect the unexpected and continuously reinvent the business model and strategies

How IT Compounds Budget Forecasting: IT has quietly assumed a larger portion of the corporate budget and has consequently become more integrated with the overall financial plan. Expensive IT investments can drain a budget. The volatile nature of IT, such as unexpected crashes, security threats and upgrades only increase budget uncertainty.


Issue # 2: Volatile Market Conditions

Great businesses aggressively position themselves ahead of the competition during economic downturns. They stay focused on the things they have control over, and act proactively to the things they cannot control.  Business owners must take advantage of and profit from changing dynamics in the marketplace.

How IT Compounds Changing Market Conditions: The conventional process of purchasing, installing, managing, protecting and supporting an onsite IT system has become a vicious cycle and runs contrary to management’s role to reduce recurrent expenditures. With the volatility of the economic market, unpredictable IT purchases should be a last resort.


Issue # 3: Managing Risks and Liabilities

There is constant pressure to evaluate the level of risk and return on any investment. During these times of recession, declining sales compel management to reduce costs to protect the bottom line. However, in today’s competitive market, owners must do so without harming growth potential, or putting the organization at risk.

How IT Compounds Risks and Liabilities: The more IT equipment, the greater the risk.  Most organizations are forced to overinvest in IT to meet growing demand, thus increasing expenditures and the involved risk of IT maintenance and management.


Issue # 4: Rising Energy Costs

Rising energy prices have not only hurt the average consumer, it has also led to higher electric bills at the office. Office utility bills have led many businesses to seek creative alternatives to reduce energy costs.

How IT Compounds Rising Energy Costs: Powering, cooling, and operating PC’s and servers is responsible for huge electric bills. Since humid and moist conditions can be detrimental to a computer system, office temperatures have to be set at cool levels to keep a server running. Gartner Research estimates that the electrical bill alone per server can cost $3,700 over four years.


Issue # 5: Employee Satisfaction

Tough business times are not only hard on management. Employee stress increases as productivity decreases. Furthermore, employees face their own issues with the rising cost of commuting. Management must build a strong culture based on flexibility and team collaboration.

How IT Compounds Employee Satisfaction: IT problems such as computer downtime to due server crashes or security issues only add to an already elevated stress level. Downtime only lessens employee productivity and thus lowers company productivity.


Click to see 5 Key Assurances in Volatile Economic Times


We hope you have found this information helpful. If you feel that your current houston technology services do not meet these standards, or if you would like more information on IT outsourcing please feel free to contact us: