Nina Adam's article in the Wall Street Journal, Business Investment Is Changing Its Stripes" touches on new trends in outsourcing key functions of technology within many businesses, especially in regards to cloud computing.
In previous global economic expansions there has been a dramatic increase in “corporate investment in new machines, factories and technologies,” according to Adam. Consequently, she explains that the current expansion is not following this trend. This may seem problematic but certain changes to business investment could be the cause. For example, nowadays, weak corporate investments fail to “capture powerful new trends in technology and business practices.” Additionally, since machines are continually becoming more efficient there is less of a need for business to buy “traditional capital-goods equipment.” That being said, businesses are also becoming better at utilizing outsourcing functions through systems such as cloud computing. This alone could account for the decrease in spending for desktop computers and “other IT equipment.” When we take a moment to stop and really analyze the information before us, it becomes evident that a bright future may be on the horizon.
Read the full article on the Wall Street Journal site.
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