Every type of organisation – in both the public and private sectors – are facing a unique set of challenges around budgeting and investment.
The public sector is dealing with the announcement by the new Chancellor, Rachel Reeves, that all departments need to find £3 billion of short-term savings and find 2% of savings in back-offices. These requirements will have a major influence in departmental budgets, which now need to be set three years in advance. Meanwhile, the private sector faces new barriers in accessing funding, and are finding it increasingly difficult to invest in core activities and surge out of the economic turbulence positively.
For both sectors, IT often represents a point of conflict between the contrasting demands of cost-cutting and investment in innovation. All organisations recognise the need to constantly update their technology: this can be either to expand capability and productivity in order to achieve goals, or to prevent obsolescence of old kit (such as Microsoft no longer supporting Windows 10 from October 2025).
However, the substantial investment required to refresh software and hardware can often feel impossible at a time when savings and cost efficiencies are the priority for many. According to Gartner, 52% of organisations spend less than 3% of their revenue on technology, which inhibits their ability to evolve and enhance their IT estate for the needs of today’s world.
This is where alternative means of funding technology refreshes can be so helpful for every type of organisation.
Why are organisations struggling to keep pace with their technology?
Refresh cycles driven by depreciation
Many decisions around refreshing devices – especially if purchased using cash – are based on depreciation over a predetermined amount of time (typically three years). This also leads to assets being sweated beyond this period if they are still working, which leads to an IT estate that is ‘just about good enough’ rather than fully fit for purpose.
Lack of innovation and new technology
Organisations that don’t invest in new technology are missing out on productivity and ROI gains and are limited in their ability to innovate. They may also be stuck with outdated hardware that is increasingly expensive to support. Many organisations unable to invest are held back by the financial implications of paying cash for assets.
Hidden costs within
older assets
The longer an asset is used for, the greater the costs of supporting and maintaining it, as well as knock-on effects on productivity through inefficient running. For example, IDC has found that four-year-old servers cost three times more in operating costs than new ones.
Economic uncertainty
A change of government and some major changes in economic policy are leading many organisations to take a more cautious approach towards technology investment.
Making tech investment a force for good with SCC
Proactive and strategic investment into technology refresh gives you greater control and aligns technology with organisational outcomes for maximised ROI. And thanks to SCC, no longer does this require major and compromising capital investment. SCC’s range of flexible payment solutions, including as-a-service subscription payment models, allow you to build the right payment profile for your technological, operational and financial needs:
Technology refresh
Spread the cost of new devices and hardware over a predefined period of time (usually between three and five years). When the term expires, equipment can be returned, purchased or upgraded, depending on the needs of the organisation and wider IT refresh plans.
As a Service (AaS)
An end-to-end service for managing device refresh and lifecycles, based on a simple repayment plan fundable from operational expenditure. AaS encompasses supply, staging, delivery, installation, support and recycling, and allows refreshes – and the financial implications of them – to be planned and budgeted for well in advance.
Value release
SCC can buy back existing assets to free up cash, and if needed, set up a repayment plan for organisations to pay for them over 12, 24 or 36 months. This allows investment into new technology to be spread out over time, and helps make disposal of obsolete assets, such as those incompatible with Windows 11 – more cost-effective.
Software Payment Agreement (SPA)
SCC can buy large volumes of software from providers and offer organisations a fixed repayment cost over a set term. Being able to purchase the software in the longer term enables SCC to provide a discount of up to 20%, depending on the software required.
How SCC can help
When you partner with SCC, you don’t just get access to a range of flexible payment solutions. You’re partnering with a technology leader with a proven track record for maximising technology in ways that are cost-effective, and that are perfectly suited to the demands of public and private-sector organisations alike. At a time when strategic planning around technology upgrades and cost control are vital, SCC can lend vital expertise and support in both areas – all from a single team and service.
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Make your technology refreshes seamless and cost-effective
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