Saving Cash For Growth, Not Financial Survival

By Don Reisinger  |  Posted 05-09-2013
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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."

Cost-Cutting Leads to Investment  It's not just about competition. More than half of businesses—54%—believe that if they cut costs, they'll be able to obtain the required investment they need for growth.

Saving Cash For Growth, Not Financial Survival
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 

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