Menu
IT spending steady and strong for 2008, survey says

IT spending steady and strong for 2008, survey says

Of 1,000 IT professionals surveyed, more than three out of four say their IT budgets will remain steady throughout 2008 despite concerns of a US recession

Despite concerns about a US economic recession, more than three quarters of 1,000 IT professionals surveyed say their IT budgets will remain steady throughout 2008 and 55 percent of those report plans to increase IT spending.

The survey, conducted between January and March by Enterprise Management Associates (EMA), asked nearly 1,000 IT professionals their plans around maintaining, increasing or decreasing their IT spending in 2008. The results showed a majority do not have plans to cut IT spending amidst talks of a US economic recession.

"There has been a lot of concern that IT spending may be negatively impacted this year due to recent economic concerns, such as the sub-prime mortgage collapse," said Scott Crawford, EMA research director, in a company statement releasing the survey results. "However, along the lines of several other technology indicators, including strong earnings, our research shows that technology has become so critical to improving the performance of business that organizations might look outside of the IT department to trim expenses."

While many analyst firms, including Forrester Research and IDC, anticipate a spending slowdown in 2008, EMA's survey revealed that companies in specific vertical industries would actually increase their IT spending.

For instance, the research firm reports that industries such as manufacturing, retail/wholesale/distribution and healthcare/medical/pharmaceutical are planning increases. Specifically, 62 percent of manufacturing (non-IT) respondents reported they would most likely be increasing their IT spending in 2008 over 2007 numbers. Nearly 60 percent of those in retail are planning to spend more, and 55 percent of IT professionals in healthcare spending reported the same.

Large enterprise companies are showing confidence in IT despite talk of recession. Nearly 80 percent of large enterprises with between 10,000 and 20,000 employees intend to keep budgets the same or increase their spending in 2008. One-fourth of survey respondents intend to increase spending by 10 percent or less, while 17 percent are looking for bigger increases between 10 and 25 percent.

The EMA survey also showed that 60 percent of security professionals reported increased IT spending in their organizations in the past year. And nearly two-thirds of companies in the high-tech sector said they had higher budgets in 2008.

"When you look at our primary research on IT spending, coupled with insights from other recent EMA studies on sectors like security and virtualization, the outlook for IT spending is really favorable," said Andi Mann, research director at EMA who co-led the survey with Crawford. "While increased caution and reduced budgets are affecting certain parts of the economy, IT appears to be showing real resilience."


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the leading customer-centric Microsoft channel partners

Meet the leading customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the leading customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments