The technology sector is now reinventing itself at an unprecedented rate and has literally changed every aspect of the way any business operates and never before in history has that change occurred so fast.
Change has become the new normal, hurtling around every corner at a speed that organisations are expected to match. Digital innovation is creating significant value by transforming business models, customer experiences, operations and reimagining the workforce of tomorrow.
Organisations are now faced with a complex balancing act that demands they remain invested in technology and employees to maintain a competitive edge, while still remaining cognisant of how the market and economic climate impact financial decisions.
The challenge for the CIO and CFO in this digitised economy is to ensure that investment into technology delivers long-term value, stability and capability without weighing too heavily on the bottom line.
Partnerships are instrumental
According to S. Singh Mecker, Innovation Leader at KPMG USA, “tech industry market leaders are recognising the value of alliances and cross-industry collaboration as a part of their growth strategy to help them scale offerings and capture opportunities more quickly and efficiently.”
With the adoption of the as-a-Service or subscription models, we are seeing an increased demand for agility in the face of disruption that can be matched through the use of partnerships. Access to technology vs ownership of technology will allow organisations to keep pace with technology and embrace digital transformation ahead of the competition.
These factors are playing a significant role in the growth of the asset leasing market as a balance between getting maximum value out of technology, and optimising budgets. Knowing where to join forces with another business is a key factor in making any growing company successful. Seeking out a leasing partner will make sure an organisation saves money both up front and over the lifecycle of the equipment.
The asset leasing effect
Organisations are beginning to recognise the benefits inherent in partnering with leading leasing providers to access the technology they need. According to the 2017 IDC report, more than 75% of the organisations surveyed found that one of the biggest advantages of the IT leasing solution is the process. It’s efficient, allowing for the organisation to integrate seamlessly across administration and operations.
Asset leasing is transforming the way organisations procure and manage their technological investment. From the financial perspective, leasing rather than obtaining funding through loans, maintains existing credit lines, and depending on the type of lease, it is possible for leasing payments to be offset against taxable profits or counted as an operating expense.
From a technology perspective, the flexibility of being able to change or upgrade the hardware before the end of its natural lifecycle is an attractive argument for leasing.
Asset leasing service providers such as InnoVent, offer effective end to end asset management solutions, assisting organisations from the procurement stage, to asset management and the eventual disposal of those assets. The business can then focus on what it does best, its business.
Technology life cycles are getting shorter every year and the pace of change is challenging to match if assets are owned. A lease will give you access to the latest technologies from top tier suppliers providing organisations with the option to select the best equipment to suit their growth and strategic requirements
For more information on leasing technology, visit www.innovent.co.za.
This article was published in partnership with InnoVent.