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IT directors putting cost before quality

John Riley

Price is now so crucial to some IT directors that they are prepared to drop service standards if it secures a lower price from their suppliers, the chief executive of a large IT services company has claimed.

Speaking at last week’s Regent Associates conference for heads of IT supply companies, Computacenter’s chief executive Mike Norris said, "Chief information officers want to increase their revenues and margins or reduce costs. It is easier to sell cost reductions at present."

"Service can be ‘good enough’," he said. "You do not have to increase service - chief information officers will even take marginal deterioration of service to get a better price."

He predicted that the prices for PCs would continue falling and that the standard price for a PC would soon reach £200.


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