Gartner sees IT spending recovery

Link: Corporate IT spending set to fall

According to a Gartner survey. chief information officers (CIO) say they will be tripling their spending in 2003 creating more than 5.4% growth.

Software and IT services which will see most significant growth in 2003 and 2004, while hardware spending continues to remain dead-flat, with no percentage increase.

Peter Sondergaard, head of European research at Gartner said the most important issue in 2003 is to change how budgets are spent: ‘Businesses will still be operating with budgets at the same level as in 2000.

‘While business priorities are still on cutting costs, IT departments must find a way to divert focus from pure cost-cutting to continued cost-optimisation, and to make investments that deliver business value from IT,’ he said.

The CIO survey showed that they are looking at reducing the cost of the IT budgets, seeing the business value of technology and providing leadership and guidance to the board of management.

Gartner said the most immediate method of demonstrating business value fortechnology is by investing in the consolidation of existing IT infrastructure.

The UK, Ireland and Italy are the bright spots where spending growth is expected to be the most significant.

Related reading

HMRC banknotes