Software and IT service sectors set for growth

Software and IT service sectors 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 the analyst 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 they were in 2000.

‘While business priorities are still focused on cutting costs, IT departments must find a way to divert focus from pure cost-cutting exercises 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 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 for technology 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.

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