Software spending set to rise next year

Analysts expect average increases in software budgets of 1.53 per cent next year

There is light at the end of the tunnel for the IT industry, according to new figures from analyst firm Gartner which predict a rise in software spending next year.

A survey of 1,000 IT professionals worldwide found that, although most are still driving down budgets in 2009, next year will see average increases in software budgets of 1.53 per cent.

Gartner urged the vendor community to help customers to cut costs and better utilise resources in order make the most of the new budgets.

"Software vendors should continue to build, fund and invest in software sales and marketing programmes, even during tight market conditions, to maintain customers and expand revenue opportunities," said Joanne Correia, managing vice president at Gartner.

"A market downturn is a disrupter that creates great marketing and sales opportunities for organisations prepared to take advantage of the right products, marketing programmes and funding."

Gartner also advised software vendors to improve their relationships with IT and lines of business, and to change market tactics according to the maturity of demand.

"Vendors need to use a consultative selling approach to understand and address the most critical needs of IT and the business of their current and prospective clients," said Correia.

"Software vendors also need to develop a stronger presence through partnerships or an extended salesforce in emerging markets where higher budget increases are expected."