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IT spending: Where does it go from here?

Will Sturgeon Silicon.com

Published: 24 Oct 2002 14:48 BST

Technology spending is on the rise--with the general pattern pointing towards increased investment in security, CRM and ecommerce software.

Better news still for vendors, many companies in the US and across Europe have shelved ideas of a clearly visible return on investment, according to the findings of an IDG survey commissioned by Getronics.

Forty-one percent of companies surveyed said they expect spending to increase over the coming year, while 44 percent said they expect spending to remain static. Only 14 percent of companies anticipated a decline in IT expenditure.

Security was considered top priority for the coming year by 36 percent of companies surveyed. In the US only 23 percent said security was their top priority, while in Europe the figure was higher at 38 percent.

It is also boom times for outsourcing, which accounts for 30 percent of all IT expenditure across the survey sample--with 43 percent citing cost saving as the major reason for outsourcing.

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