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Document It

Enterprise companies are spending twice as much on document costs than they think, demonstrating a need for the channel to devise more cost-effective document strategies for their customers, according to a study by InfoTrends/ CAP Ventures.
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The study found companies believed they were spending an average of 3 percent of revenue on document costs, whereas the actual figure was 6 percent. IT support, procurement/facility costs and document management are among those areas ripe for assessment.

Small-Business Savvy

After six straight months of increased hiring, small businesses cut back on employment in September, due largely to the impact of the two hurricanes, according to data from market monitor SurePayroll. This was only the second decline in the past 20 months, however, and small businesses remain resilient in the face of economic worries. The Northeast is showing the strongest employment growth, and small-business expansion could provide lucrative opportunities for solution providers.

Somber Spending

Business expectations for IT spending over the next 12 months have plunged in the wake of Hurricane Katrina and the prospect of permanently high energy prices, according to monthly data from market researcher IDC. Indications are that businesses plan to boost IT spending by 2.9 percent in the coming year, down from 6.1 percent a month earlier. The data confirms what CRN had previously indicated, that over the rest of this year spending growth would drop by about 3 percentage points. CRN continues to hold, however, that spending will rebound next year due to post-hurricane reconstruction.

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