There may be trouble ahead ...

The tech sector may be tough, but business goes on. Buyers are becoming cannier in their spending, just as sellers are having to work harder at walking the tightrope between balancing profitability and customer value.

But the good news, according to our recent research of the financial services sector, is that investment in core technology continues to move ahead.

Of 127 IT managers surveyed, three-quarters are making investment in their website their number one priority over the next year. Respondents are also intent on implementing e-business applications and knowledge management tools, at 71 per cent and 62 per cent respectively.

Fewer than one third say that they have any plans to invest in mobile applications. Much higher up the list come e-commerce, customer relationship management, portals and e-procurement.

What we can deduce from these findings? Clearly, the mood among those in the know seems to be cautiously confident. Despite the ravages of the past year, organisations are still putting their faith in core technology to pull them out of the slump.

So where does this leave the seller? To weather the downturn, they obviously have to be aware of the new business reality. This involves not only providing products that can be aligned to real commercial needs, but being clear during the negotiation and contract phase about what is included and what is not.

Users are always on the look out for a good deal, of course, but they also want to see benefits, good service and support.

We should remember that this industry has always been subject to boom and bust, cyclical revivals and flat lines.

At the moment we're in a transitional stage, waiting for technologies like mobile-commerce, wireless and broadband to take off. When they do, we'll see companies developing applications that will push the boundaries of what's new, smart and useful.

So it looks like there's light at the end of this long dark tunnel. Just don't forget any of the lessons you picked up along the way.

Jonathan Eales is open system marketing manager at Bull UK & Ireland.

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