One in three UK companies have no idea what their Euro strategy wills. be and have not begun to prepare their IT systems for the new currency, according to the annual UK IT Trends and Expenditure report from IDC.
The study also found that almost half of all UK organisations were still only in the earliest stages of dealing with the Y2K problem at the end of last year.
IDC questioned 1,250 UK IT executives in a variety of organisations, including banks, insurance companies, healthcare organisations, educational establishments and the government.
It found that 14% of IT budgets last year was devoted to dealing with Y2K, a percentage which IDC expects to grow to 29% for this year. The remainder of IT budgets were spent on migration projects to new platforms, intranet/Internet projects, support services, hardware and telecoms implementation.
About 44% of IT budgets will be spent on new hardware this year, IDC predicts. This finding backs up claims from Winfried Hoffmann, joint chief operating officer of Fujitsu Europe (see PC Week ,16 June), that the PC sector "will see unbelievable growth in the next two years because more and more companies are just going to replace their products to cut down on the risk" posed by the Year 2000 problem.
The report also found that organisations' expectations from suppliers are not being met, particularly because suppliers do not understand their customers' businesses. "The results tend to suggest that the larger the site, the greater is the apparent perceived gap between expectation and the ability of the supplier to understand the customer's business." said Marianne Kolding, an IDC analyst. "This is due to higher expectation on the part of large customers, combined with suppliers finding it in practice harder to deliver to larger, more complex organisations," she added.
IDC has also predicted that the UK IT market will grow by 11.1% in 1998, to reach a monetary value of #28.4 billion. The company forecasted a growth to #37.5 billion by 2001, representing a five-year compound annual growth rate of 10.6%.
IDC IT TRENDS REPORT FINDINGS
- Large organisations claimed the highest intention to change platform during 1998, with nearly 15% of respondents claiming they will change platforms during this year
- Of those planning a platform change and who stated a preference, 36% intend to move to Microsoft NT
- More than half of all sites have Microsoft NT server as their LAN operating system
- On average, the number of Network Computers (NCs) at each site will increase by 14%
- More than 40% of large organisations claim to have established an intranet or extranet
- Most organisations' view, with regard to the Euro, is that they will modify existing applications with the assistance of external suppliers.
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