Saving Cash For Growth, Not Financial Survival
The corporate world is changing at a rapid pace. Companies are now much more likely to allow their employees to use their own products for work, they've warmed to the idea of using smartphones and tablets, and cloud computing is a new frontier. More than that, as the economy continues to rebound, companies are trying to find ways to save cash and preserve their operations.
But it appears that all of the cost-savings strategies that companies have been using as their primary model to save their operations are now transitioning. Whereas once the strategies were about financial survival and making moves that would keep the company afloat, a new study of 153 senior executives by Deloitte Consulting has found that cost savings is now being used as a way to grow the business and improve a company's position in the marketplace.
"Businesses today are just as committed to cost reduction as they were in the depths of the global recession," Deloitte noted in its study. "The main difference now is that many are focused on cost-cutting as a way to drive growth, rather than as a way to survive or avoid insolvency."