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Paul Saunders, 17th March 2010

How Rising Petrol Prices will affect IT

2 comments

According to the AA UK petrol prices are rising to record levels and could soon average £1.20 a litre. How willl this affect IT?

Inflation
The most likely affect will be on inflation as road haulage prices will almost certainly rise in line with what has been a 17% increase on fuel costs in the past month.  Therefore IT procurement costs will potentially rise with the greatest exposure being on delivery costs.  Delivery lead times may also be affected if haulage firms commence retrenching activities.

Remote Working
As inflation begins to bite, commuters will certainly start to consider their options. Managers may need to offer flexible working arrangements meaning a greater burden on IT departments to offer remote working solutions.  Mobile telephony, secure connectivity and virtual environments offer practical solutions to allow workers access to all their usual IT resources from practically anywhere.
 
Web Conferencing
Already there is a trend to reduce the cost of business travel.  Several large organisations have an unofficial “No Travel Friday” policy.  As the cost of travel increases these informal arrangements will become more widely adopted.  Emphasis will shift to IT departments to provide practical alternatives to travel.  VOIP technologies are already widely used in business and desktop communication tools like Skype and desktop telephony will become more and more significant.  The use of web conferencing software will also increase.  Subscription services like WebExand GotoMeeting are already popular, but there is more and more choice with Open Source and free solutions now available such as Dimdim and WebHuddle.

Cloud Computing
Traditional client-server based applications are already in decline in favour of internet based software.  As more and more workers operate remotely the requirement for online collaboration will increase even more.  Software as a Service (SaaS) and virtualised resources offer reduced IT capital expenditure and promote remote connectivity, so these emerging technology trends will only strengthen in the current climate.

Contact us for more information on any of the technologies described here.

malcolm cox, 18th March 2010 at 5:12pm

Paul We are either doing or exploring all of the above;in our opinion there are two big stumbling blocks is the "coffee machine" that five minutes where people can group together and dicuss last nights tv/SOAP/sport, from a staff perspective. From a business perspective is trust that the individual is working for 8 hours, work will have to become more output based for some organisations to move in this direction. I guess you can sumerise it as "old school" on both sides. Develop an electronic "coffee machine" you will be on to a winner, from a staff point-of-view. Malcolm

Paul Saunders, 19th March 2010 at 11:04am

Good points Malcolm, The lack of human contact is a really significant factor. I used to work with one supplier who had most of their team working from home and their local guys used to make any excuse to come and see me face to face or work from my office just for the sake of a bit of human contact. As for the objective based output - this is the way forward. It works perfectly in industries where output is easliy measured such as agriculture (fruit & veg picking) and some manufacturing environments. Where it becomes interesting is where the output is slightly more nebulous and less tangible. The emphasis is on managment to construct bullet proof regimes where this output can be measured - but the tools are there with enterprise software that clearly details and outline tasks, targets and priorities and can track and record accomplishment - the challenge is with feeding the system with the right inputs to get the desired outputs from your guys.

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