UK IT leaders refusing to buckle under cost pressure
8 out of 10 UK IT leaders (ITDMs) are under increasing pressure to find cost savings on commercial hardware, as well as increased financial scrutiny with more stakeholders to satisfy. Despite these pressures, ITDMs are refusing to buckle. 81% are planning to increase their commercial hardware budget for the year ahead, because, they believe, when it comes to device quality - you get what you pay for, and investing in premium reduces total cost of ownership (TCO).
New research from Microsoft Surface, which surveyed 150 ITDMs responsible for buying workforce hardware and carried out qualitative research with IT stakeholders in multiple sectors, also reveals what they are looking for from devices. IT leaders are building stronger relationships with senior finance colleagues, to help navigate economic uncertainty, with both teams remaining laser focused on delivering long-term value and performance.
Devices that perform, last and just work
The report, “Hardware TCO Concerns Driving a Flight to Quality”, reveals that, while the current average workforce laptop lifecycle is now 3.2 years, 74% of ITDMs are looking to stretch this out – with an extension of 1 to 2 years being planned by most (63%). This is because 76% agree reducing hardware purchase frequency will save their company money.
The findings also show the features ITDMs consider most important in a workforce laptop, given their focus on extended lifecycles and lower total cost of ownership, are:
1) Reliability – including consistent performance, without failure (58%)
2) High specifications – including device power, speed and battery life
3) Durability – including the ability to withstand wear and tear
“We needed to better understand the current buying environment and the extent to which UK IT leaders have TCO in mind during the purchase process, and it’s been reassuring to see how well respondents appreciate the difference between price and value. It’s clear that reliability, performance, and durability are the key features and benefits helping IT leaders defend their hardware budgets in 2023/24 - and saving IT teams’ time, as well”, says Alan Slothower, Head of Surface Commercial, Microsoft UK.
Valuing the employee experience
The research also finds that 77% of ITDMs recognise enhancing the employee experience in the current economic climate is more important than ever. With 81% of respondents saying premium laptops are worth the investment because they increase productivity, and 76% because they keep employees satisfied and happy.
More than eight out of ten (82%) of respondents say empowering employees with premium laptops results in fewer security and performance related issues, and nearly three quarters (73%) of UK ITDMs say employees now expect to receive premium devices.
“It would be all too easy to keep non hardware or UX experts happy by acquiescing to the cheapest option. Yet the UK’s IT leaders understand, regardless of what the economy is doing - workers need quality tools if they are going to do the standard of job required to drive company growth - and IT is responsible for enabling this”, comments Slothower.
Savvy IT operators building strategic relationships
ITDMs are also responding to the current climate by building stronger relations with senior finance – 78% are developing a deeper relationship with their CFO and finance lead, and 79% now have broader discussions across the business to make the case for commercial hardware investment.
Such strategic relationships may come in handy as alternative financing and purchasing models evolve, with the research finding that while 53% of respondents still buy commercial hardware as part of their annual budget, 40% of ITDMs are actively exploring alternative purchasing models. 31% of respondents are already using Devices as a Service (DaaS) and 22% are leasing hardware.
Slothower concludes, “Delivering positive ROI provides a good proof point for IT leaders to share with their finance contacts as hardware lifecycles are successfully extended. More organisations may adopt a quarterly catalogue purchase approach, where rather than buying annual company-wide refreshes once every three years, organisations could select smaller batches that help them keep up with the pace of technological change in a more cost-conscious way.
Whatever the future holds, the UK’s IT decision makers deserve a pat on the back for how well they are standing up to increased pressure and scrutiny in an uncertain inflationary and economic environment. Their influence within organisations continues to grow, and with the arrival of AI as the next gamechanger for workforce productivity – this trend is unlikely to slow down any time soon. IT leaders’ ongoing expertise and guidance has never been more important than it is right now.”
