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Enterprise IT budgets to increase by only 2.7 per cent over the next six to 12 months: Aberdeen

Enterprises are expected to increase their technology budgets by an average of 2.7 per cent over the next six to 12...


March 10, 2003  


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Enterprises are expected to increase their technology budgets by an average of 2.7 per cent over the next six to 12 months, according to a recent survey of CIOs and other IT purchasing decision makers.

This survey was performed by Aberdeen Group, a market analysis and positioning services firm. In a similar survey last September, CIOs indicated their overall IT budgets would increase on average 3.7 per cent over the next six to 12 months.

The survey data are highlighted in a new report, Technology Forecasting Consortium: 2003 User Buying Intentions, which is based on a recurring survey of IT executives in the Technology Forecasting Consortium (TFC). The TFC is Aberdeen’s end-user advisory council that assists in the early identification of trends in the IT market and the prediction of user buying intentions.

In the most recent survey conducted in January 2003, CIOs identified their “intent to purchase” and “priority of purchase” for application software, technology infrastructure, hardware, and services.

“The survey results show that IT spending growth will continue to be slow and incremental over the next six to 12 months,” said Hugh Bishop, Aberdeen Senior Vice President and author of the new report. “This data is in line with Aberdeen’s forecast that worldwide IT spending will increase approximately four per cent in 2003 and is closely tied to GDP in capital spending metrics.”

Key findings of Technology Forecasting Consortium: 2003 User Buying Intentions include:

* The top five application categories (out of 35) with a positive intent to purchase are content/document management applications; query/reporting/analysis; project management; Web management applications; and Web analytics;

* Compared to the September survey, the average intent to purchase for all 35 application categories combined increased, while the average priority to purchase decreased over the same time frame. Aberdeen’s analysis of this data is that more organizations are considering new application purchases but have yet to move into formal evaluation or purchasing processes. This is a potential early indicator of a recovery in the business application sector;

* With the exception of mainframes, CIOs expect to increase spending in all hardware categories during 2003. The most optimistic forecast is that for servers.

The report is available in two formats. An abridged version is available at no charge and the full report with complete survey results is available for US$495.

Further information is available at www.aberdeen.com


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