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IT spending to rise in 2005

IT spending to rise in 2005

THIS year’s analysts predictions are out and point towards a rise in IT spending.

A Gartner survey of 1,300 CIOs from more than 30 countries shows an expectation that IT budgets will increase by 2.5% this year.

Pressure for greater profitability and faster innovation is driving the growth of business process improvement and business intelligence.

This change in the role of IT is seen by CIOs as a key challenge for the year ahead.

IDC predicts security spending will be a priority, boosting the security software market by 18.9% in 2005.

IT services marketing analyst for IDC New Zealand Jane McPherson says 2005 is looking positive.

“The key areas are security, storage and ERM. IT is now being looked at by companies as a necessary expense rather than a cost,” she says.

Deloitte IT consultancy partner Thorsten Engel says the fact New Zealand is heading into an election year is a reason for increased spending.

“There are also a few huge government agency projects that are putting a lot of money into technology services,” he says.

These include ACC carrying out a three-year $120 million core systems upgrade and Statistics New Zealand’s online census.


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