Syscap celebrates partnership spike

IT financing specialist sees customer numbers shoot past 800 for the first time

Philip White: Vendors that don't offer finance are beginning to realise they are at a competitive disadvantage

Syscap saw vendor partnerships rocket by 127 per cent in 2009 as more industry players cottoned on to the need for proper finance provision to customers.

For the year ended 31 December 2009, the leasing specialist signed 62 new partnerships, including vendors and distributors, compared with 49 in 2008.

According to Syscap, businesses are considering upgrading their IT systems in preparation for economic recovery, but actual purchasing decisions are being held back by their low levels of cash.

The Office of National Statistics says that investment by UK firms in computer hardware in the third quarter 2009 leapt 43 per cent to £1.39bn, up from £973m in Q2 2009. Investment in software in Q3 increased by 11.8 per cent to £1.39bn, again up from £1.24bn in Q2 2009.

Philip White, chief executive of Syscap, said: “Demand for both software and hardware is beginning to rebound and where vendors can offer their customers finance they are finding it easier to close sales. Those vendors that do not provide finance are now beginning to realise that they may be at a competitive disadvantage.”

White added: “It is hard to say how sustained this recovery in IT investment is going to be but firms that want to take advantage of this should be offering finance to capture as much of this growth as they can. Lack of cash and bank lending among their customers is now the single biggest sales barrier for IT vendors.”