The predictions come despite CIMA research last month, which found half of companies had uncovered ‘major’ deficiencies in the finance function, particularly with integrating information from different IT systems.
But, according to the latest survey of chief information officers, by US investment bank Merrill Lynch, budgets are set to increase this year, and could go beyond predictions if economic stability was reached.
The results will be viewed as good news by the technology sector, which has endured a torrid time, reflected in a worldwide IT slide of 1.1% during 2001.
Last year European budgets grew 2.6% while US budgets fell 2.8% in 2001. Predictions for 2003 are even more encouraging, with US CIOs expecting a 6.8% increase, while their European counterparts believing 12.1% growth is attainable.
The biggest areas of growth are expected to be in storage and software, while personal computer spend is expected to fall.
There was a sting in the tail however; with 75% of the 110 CIOS questioned, saying 2002 will be a bad year for software vendors, except for the larger players including IBM, Microsoft, Dell and Compaq.
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