Cutting IT training ‘could reduce competition’

Cutting the amount of money spent on IT training during the recession could see businesses left in a less competitive position than others once the recovery begins, one sector commentator has claimed.

Michael Dean, head of marketing at the National Computing Centre, said: "IT offers organisations of all sizes the opportunity to reduce costs and improve performance."

He added that once the recession showed signs of ending, firms that had taken the decision to make cost cuts within the IT department, including those used for training, may themselves having to catch up to their competitors.

Indeed, Ardent Solutions recently reported that in order for small and medium-sized enterprises (SMEs) to gain competitive status within their industry, investment in IT must continue as well as effective management being in place.

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However, 23 per cent of SMEs admitted that limitations on IT budgets run the risk of having a negative impact on the business through loss of competitive advantage.