Austin, Texas (PRWEB) April 2, 2010
In the wake of the worst recession in over 50 years and near record-high worker productivity levels, small and mid-sized companies have started investing heavily in business software again. According to Mindover Software, a reseller of Sage Accpac ERP and SageCRM software based in Austin, Texas, business in the first quarter of 2010 increased 10% compared to the same time last year.
“There’s definitely pent up demand for technology that can integrate diverse software and automate as many business processes as possible,” says Lloyd Smith, president of Mindover Software. “We’re even receiving requests from customers who haven’t invested in a technology refresh in over five years.”
A poll recently conducted by The Sage Closer, a PR and marketing advisory firm serving the business software industry, of business software resellers across North America shows 41% reporting positive growth year over year. Over 30% of the respondents reported revenue increases in excess of 10%.
Nonfarm labor productivity in the final quarter of 2009 rose a healthy 6.9% according to the US Bureau of Labor Statistics. Ray Perryman, founder and president of The Perryman Group, an economics and financial analysis firm based in Waco, Texas, sees a correlation between high levels of sustained productivity and investments in technology. “While much of the gain productivity in the recovery to date reflects the cyclical lag in hiring as output increases, sustaining it at the level necessary to compete gloabally will require ongoing investments in technology,” Perryman says. “As the economy has begun to expand over the past few months, investments in equipment and software have been key drivers. This pattern is expected to continue over an extended period, as the demographics of an aging workforce compel the use of new technology and business software as the principle source of cost-effective productivity growth.
Still, it may be too early to call the growth a broad economic recovery as nearly 36% of poll respondents reported a decline in year over year revenue growth – meaning growth has a slim 5% edge over decline.
Mindover Software’s Smith reports being surprised by the renewed interest in software upgrades for the Sage Accpac ERP and SageCRM product lines late in 2009. “Several companies, one of which is a tile and stone manufacturer and distributor based in San Antonio, decided to make strategic investments in a completely integrated Accpac and SageCRM software platform,” Smith states. “Each customer indicated a strong desire to improve worker productivity and gain a competitive advantage over competition.”
While it is still too early to know how strong or sustained the current economic recovery will be, economist Perryman says investing in technology now could be a risk worth consideration. “Companies making investments today may be the ones best positioned to execute with greater efficiency and accuracy when business returns,” he says. If smaller companies like Mindover Software are any indication, then businesses across the U.S. are seeing the current economic trend, shaky though it may be, as a good time to take such a calculated risk.
About Mindover Software
Mindover Software is a Sage business software partner offering a broad range of Sage CRM, ERP and accounting software solutions including Sage Accpac ERP and SageCRM. From Texas offices in Austin, Dallas and San Antonio, Mindover Software’s professional consultants help companies improve efficiency, cost savings and sales. Learn more at http://www.mindovercorp.com or toll-free at (866) 990-3994.