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ScotlandIS welcomes rate cut

Hi-Tech Scotland reporter | Monday November 10, 2008



The trade body for software, telecoms and IT has welcomed the 1.5% base rate cut announced by the Bank of England.

Commenting on the cut Chairman, Eddie Chance, said : "This is a bold move and very welcome to businesses small and large. It is essential that this is reflected in interest rate reductions being passed onto customers by the retail banks.  Whilst we fully recognise the issues around money market liquidity and the differences between base rate and LIBOR, the high street banks must bring the margin they are charging over base rate back to pre credit crunch levels.  Small businesses in particular are facing the double challenge of increasing costs of borrowing and lengthening credit terms being taken by customers.”

 The ICT industry has an intrinsic part to play in helping the wider business community meet the economic challenges of the recession.  Improving productivity, reducing costs and opening new channels to market can all be achieved through smart use if ICT and our Members are already working closely with customers to realise these benefits.

“There is arguably no other business tool which provides the range of benefits delivered by successful exploitation of technology. Investments in ICT are increasingly supporting companies, large and small, in developing new markets, providing improved customer care and enabling innovation in products and services.  At at time of economic constraint, the increasing flexibility ICT can give your business is tangible," said Chance.

"Once only available to large corporates, there is now a wide range of IT solutions available to businesses to suit all budgets. It’s great to know that we have a vibrant and expert ICT industry here in Scotland, with the experience and knowledge to work with the wider business community to get the very best from their investments in ICT.
"We have seen enormous growth in online trading and ecommerce enabled by ICT over the last few years.  Across the UK this is now worth in excess of £130bn per annum, and British consumers spend more on-line than their US counterparts. Harnessing the power of ecommerce can be transformational for business, opening up new markets at home and internationally. Many smaller Scottish businesses have seen their businesses grow significantly, having moved to ecommerce.  People now are highly conversant with ICT and comfortable with transacting online, from their personal banking to buying music downloads, to customised jeans and foreign holidays. Customer care can be hugely improved through new applications such as social networking, online surveys and transparent fulfilment."

www.scotlandis.com

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