BusinessBrief.com » IT: How much firms are spending — and what they’re buying

IT: How much firms are spending — and what they’re buying

April 5, 2012 by Valerie Helmbreck
Posted in: In this week's e-newsletter, Latest News & Views, Technology


With the recovering economy, it seems that the folks in IT are envisioning an improved outlook for their ability to spend — if not with abandon — at least without the trepidation of recent years.

While spending by IT groups hasn’t fully recovered yet, a majority are reportingboosted budgets for 2012.

new report from the folks at TechRepublic and ZDNet shows that the priorities of IT groups include more than just hanging on and containing costs. There’s a definite aura of optimism among IT pros, who plan to spend on using technology to improve business, as opposed to keeping the organization alive.

Check out these highlights:

  • More than twice as many organizations report increased IT budgets in 2011 as report budget decreases
  • 38.7% of organizations say their IT budgets have increased. Compare that to just 16.7% reporting lower budgets. 44.6% say their budgets year- on-year were flat
  • Over 20% of organizations report budget increases of more than 10%
  • The top three IT priorities are improving business process and efficiency (a “top priority” or “major priority” for 69.1% of businesses), aligning IT priorities with business growth (61.1%) and increasing overall productivity with new technologies (59.5%)
  • The larger the business, the more focused they are on lowering IT infrastructure costs. 66.2% of the largest businesses (>500 staff) are lowering IT infrastructure costs, but this proportion declines for smaller companies until it represents only 44.4% of the smallest businesses (1-49 staff)
  • Government organizations are far more intent on cutting overall IT costs (70%) than others.
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