Trends Report

Back To Basics: Why IT Leasing Makes Sense In The Economic Meltdown

Capital Conservation And Sustainability Raise Leasing's Attractiveness

January 13th, 2009
With contributors:
Christine Ferrusi Ross , Antonin Shanahan


With the conflicting issues of tightening budgets and high business demand for more technology, sourcing professionals and their finance department colleagues are looking at financing options such as leases or loans to fund their IT purchases. With limited cash on hand, clients see multiple benefits with financing options — such as low total cost of ownership (TCO), access to newer technology, and flexibility — over outright purchase of IT assets. Options like leasing can help firms to conserve their capital — both cash and credit lines — for more strategic business uses that can help boost firm's top line and profitability such as extending core operations, accelerating new product development, and launching new marketing campaigns to reach new markets. However, for sourcing professionals, external financing options mean many more benefits such as a boost to "green IT" initiatives, protection against technology obsolescence, and asset disposal. Leasing can help the continuation of on-going projects as well as kick-starting select new ones in this tough economy.

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