A new study by technology research firm AMI Partners has found that most business executives feel the economy has stabilized. However, they will still focus on key priorities like finding new ways to reduce costs and increase revenue over the next year. This includes looking heavily into IT software, services and staffing options that will directly impact these key strategic priorities.

The survey found a drastic increase in businesses looking at and buying managed services (60 percent), software as a service – SAAS (40 percent) and an increase in plans to outsource IT staffing needs for storage, security and telecommunications.

These software and IT service solutions are attractive to businesses because they offer flexible payment options and pricing models are usage based. As long as business executives are focused on cost reduction, these solutions will be a key focus.

The study also suggests the changing dynamics in how businesses are making their IT purchases. The IT software and service buying process has become more formalized, and the decision making timeframe has been lengthened. In addition, business executives (not IT) are becoming more involved and are exuding even greater influence of why, when and where IT purchases are made.

For example, business executives are spending more time assessing key business needs driving the IT purchase and deciding on the specific type of IT product and service to be purchased. Over the past year, influence from key business executives has dramatically increased. In the past, approximately 31 percent of businesses surveyed stated their key business executives were involved in software and IT service purchases. The most recent survey has found their involvement has jumped to 83 percent.

Conclusion – What worked in the past does not work today. To survive and dramatically grow in this economy, software and IT service firms must change their business strategy, offerings and how they market and sell to their customers.