While many industry figures have predicted a slowdown in IT spending in 2000, two out of three IT managers expect their budgets to go up, according to new research.
The results of a biennial survey of 100 senior IT managers in the US, released this week by analysts at the Yankee Group, suggests that IT budgets are set to increase by four to five per cent a year for the next three years.
Yankee Group director of management strategies, Gopi Bala, said doom and gloom predictors had responded on “gut feeling” about issues such as the slowdown in enterprise resource software sales and the Y2K aftermath, rather than examining the market.
While in the past, IT investment has been viewed as a means of cutting staff numbers or administrative costs, companies were now looking to invest in customer focused systems, the report found.
Forty per cent of IT managers said projects were primarily customer driven, compared with 18 per cent two years ago.
Conversely, just one in five thought their firms’ technology strategies were driven by their product and service offerings, compared with 50 per cent in 1997.
Bala said users were turning to new systems to either expand their business with existing customers or build new businesses.
“Organisations are thinking beyond growth to new business models including leveraging the Net,” Bala said.
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