Survey reveals high number of Can. firms ‘IT dropouts’
April 5, 2017
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With the fourth revolution underway and the future of big data and cloud computing shifting the business landscape, most large and medium-sized businesses in Canada leverage information technology (IT) in their growth strategies. However, almost a quarter (23%) of Canadian businesses are lagging behind, boasting only basic expertise in this sector.
These “IT dropouts” have obsolete systems, view IT as a necessary evil, and have no contingency plan in the event of an IT attack. This and other alarming data according to a new survey on the portrait of IT in Canadian businesses, conducted by Leger Marketing on behalf of NOVIPRO, a firm specialized in business transformation through IT.
“The survey shows that too many businesses underestimate the added value of state-of-the-art IT. We’d expect big players to be ahead of the curve in this area, but what we’re seeing is that many large organizations with 100 employees or more are falling behind. Yet, a business’s growth—and sometimes even its survival—are closely tied to its technological evolution,” said Yves Paquette, NOVIPRO co-founder, president, and CEO.
Across Canada, more than two in three businesses (69%) say their IT systems are functional, and one in five companies have rolled out cutting-edge systems. On the other side of the spectrum, 11% of the companies surveyed have minimal or obsolete IT systems.
Even though IT is included in the business strategies of most Canadian businesses (79%), nearly one in five companies (19%) view this more as an expense than an investment.
Reports of data breaches have been predicted to skyrocket this year, yet nearly one in four Canadian companies surveyed (24%) do not have a contingency plan for recovering their data in the event of an IT breach. Moreover, 15% of companies have no plans to make any major IT investments over the next two years. “Given the pervasiveness and rapid development of technology, it is now crucial for businesses to regularly update their IT systems to be more competitive,” said NOVIPRO technological services manager, Frédéric Beetz.
More than half of the companies surveyed (54%) see cloud computing as the way of the future. Across Canada, 34% of organizations feel that it is highly likely that such solutions will be adopted in the next two years. Nevertheless, the shift toward this technology has raised concerns regarding security (42%), cost (28%), support (16%), and complexity (12%).
The survey was conducted online from Nov. 27 to Dec. 19, 2016, on a sample of 312 decision makers at large- (500 employees or more) and medium-sized (100 to 499 employees) businesses. The main findings of the survey can be found at www.novipro.com.