Small businesses in the U.S. have made a significant investment in technology recently to allow employees to work from home. Their aim is to make working from home faster and more efficient. This has caused IT spending to be surprisingly robust, according to the Coupa Business Spend Index.
Business spending has been volatile over the past several months as the pandemic destroyed business confidence and sent budgets into a downward spiral. The biggest declining categories have been hospitality, office supplies, telecommunications, maintenance, and consultancy. Spending on travel has also diminished dramatically.
Not so in technology however. As well as shipping and freight. No surprise there considering the massive increase in home-delivered goods and at-home tech needs.
For the future, the BSI noted:
“Going forward, the greatest risk to the US economy is a resurgence of coronavirus cases impacting operations, employment, and demand. If demand falters, many companies may run out of cash. Twenty-one major retail brands have already filed for bankruptcy. Companies in other hard-hit sectors such as travel may not be far behind. Finally, other factors negatively impacting the US economy include falling oil prices as well as the reduced international trade.”
At this point, it’s simply too soon to say what’s going to happen to small businesses. One thing’s for sure. The demand for at-home working is not going away. And the demand for always-on technology, from anywhere, will remain robust for years.
Tom Rezendes is Chief Revenue Officer at I.T.WORKS! Managed IT Services. For more information visit itworks.us.com