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Businesses 'spending less on ERP software'

Companies are likely to spend less on enterprise resource planning (ERP) software over the coming months, it has been asserted.

The current market conditions mean firms are likely to plough their money into investments that yield more instant "payback", according to IDC.

Program director at the organisation Bo Lykkegaard said: "Some ERP investments are made to streamline and automate back office processes and prepare for growth. For that type of investment, the payback comes in terms of profitable growth."

His comments may contradict a report on Channel Web, that saw IT advisory firm Gartner remark ERP is to be among the key growth areas this year.

The article claimed chief information officers will also target products relating to customer relationship management, supply chain management, hosting and cloud computing.

A recent survey published by outsourcers Accenture revealed 75 per cent of senior IT professionals in the UK and North America believe ERP gives them a competitive advantage and adds strategic value.

However, British firms are lagging behind their transatlantic counterparts when it comes to installing these systems.ADNFCR-2165-ID-19192345-ADNFCR