Budapest, October 19, 2006 (MTI-ECONEWS) - Hungarian SMEs have been tightfisted with their IT spending for years, in spite of their reliance on the technology. Cost is the reason most SMEs put off IT investments, but technical issues factor as well, a survey presented on Thursday shows. In spite of major efforts by IT companies to boost sales among SMEs, expansion on the market has been less than average for many years, Gabor Vass, marketing manager of Cisco System Magyarorszag, told a press conference on Thursday.
In a survey by Coleman Parkes, 64pc of Hungarian SMEs said cost prevented them from making IT investments and 54pc said doubts about the long-term reliability of IT equipment and software was a problem. Changing technology was cited as a big issue for 44pc of companies and 40pc of companies said they were short staff which could understand big IT investments. 30pc of companies said integrating new technology poses a unattractive task and 30pc said data security poses big risks.
In spite of their hesitancy to make IT investments, 93pc of SMEs said the internet was essential for the operation, but 90pc said a secure network was a top priority. 87pc said data storage and recovery was necessary for business and 61pc said they needed remote access networks.
The survey showed that Hungarian companies are the most cost-sensitive in the region.
A focus group of Hungarian participants revealed that employees are resistant to changes in companies’ IT systems and their IT knowledge is limited.
IT spending in Hungary could reach USD 2,678m in 2007, according to a projection by IDC. By 2010, it is expected to reach USD 3,300m. IT investments accounted for about 8pc, or HUF 89bn, of total EU-subsidised investments in Hungary in 2004-2006.