Is it Wise to Invest in Software during the Recession?

An article for the HR and Payroll specialists. A review of the current economic climate and why it could be beneficial to invest in HR and Payroll Software.

We, the public, are in-updated with the news of the global recession and the bleak economic factors that coincide every day. Emphasis towards the ever rising unemployment rates and the plummeting profits leaves those at the top with the decisions to make whether to think short term by making what could be knee jerk reactions by cutting costs and laying off the workforce leaving them vulnerable in certain business sectors. Alternatively, the CEO�s could adopt a strategic mindset and invest for a potential long term gain. By employing of smarter spending philosophy companies can actually bolster their competitiveness in the marketplace and also enhance financial stability.

It is all very well saying that there are two viable approaches to tackling the most goliath of downturns, as companies will be bankrupted and go under but for the some companies it is a great opportunity to increase productivity by getting the most out of an apprehensive workforce, investing in business management software or even streamline their business models by outsourcing areas such as Pay and Bill, HR and Payroll and Credit Control.

Company software is a major asset and may offer a future competitive advantage when vying for increased market share when others are unable so it may be worth bucking the trend and investing in the endless vine of software out there, whether it is software for the HR and payroll department, or credit control/finance and accounting software.

Companies are in the recession together, as businesses form a symbiate circle due the nature of the economy, and with this in mind, it is a great opportunity to negotiate the price of outsourcing software�s, increase of new technologies which helps form of competitive advantage and special tax dispenses on computer software for purchases in 2009.

A time of economic downturn immediately suggests that companies have cut back in business capital expenditure, thus B2B companies are actively seeking immediate sales to support their cash flows, so as a company actively seeking to make the most of the recession, there is no better time than now to negotiate for software and advances service afterwards, as the software company will offer more attention and responsiveness to the newly acquired key accounts.

Due to the recent events, there are special dispensing bills in the Section 179 according the IRS website that will enable tax rebate for companies purchasing computing software. By taking the benefits of tax rebated software, it will leave your firm in good standing for when the recession turns around and your competitors are left behind with dated technologies, offering your company a competitive advantage in that area.

A slow economy may dictate the rate in which investment is made, yet if there is a strategic plan set in place in which software is updated and monitored then the transition from the old to the new technology can be done in a financially sustainable way, and if your HR and Payroll software needs updating for example then consider outsourcing a software consultant, as their skills are in less demand and are taking on more SME roles at the moment.��

A recession can be viewed as the end of a financial era and the beginning of a new one and it�s important to have a strategy set out to come out with an increased market share in the new era as competitors have petered out due to lack of investment as not identifying that productivity and efficiency of all operations to be improved and modified in order for survive and future successes.

Author: Jimmy Ireland