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Pressure Points: How to Move Forward Successfully with Technology Leasing

BY Scott McFetters
February 26, 2013

The 2013 IT Budget Benchmark Report conducted by Corporate Executive Board (CEB) Global reveals CIOs across the globe expect a modest growth in total IT expenditure while capital expenditure growth will stay flat. See, www.executiveboard.com/it-blog/2013-it-budget. Despite CIOs' efforts to reduce maintenance and mandatory spending, this continues to represent nearly 70% of total IT expenditure. This trend is amplified in the 2012 ILTA/InsideLegal Technology Purchasing Survey (http://bit.ly/12nQwgj) where overall law firm technology spend ' as a percentage of total revenue and per attorney ' is still down from the pre-2009 economic downturn and firms across the board were spending less on technology as allocated per attorney.

However, according to a Gartner report just released on 10 critical tech trends for CIOs over the next five years, there is significant growth in IT complexity. Faster change cycles are being predicted with shorter development timelines and end-users increasing demands on IT.

With these increases in complexity and demands in the technology realm, institutions will need to find ways to stay on the cutting edge of technology. With the possibility of limited capital expenditures, financing technological advances will certainly be a way to stay within budget constraints and allow firms to continue investing in the latest and greatest technological trends. Leasing is one financing option that a firm can use to cut the out of pocket costs for technology upgrades and still be able to implement new projects by providing a monthly expense versus a total cost purchase.

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