IT spend set to increase

The results will be viewed as good news by the technology sector, which has endured a torrid time recently, reflected in a worldwide IT slide of 1.1% during 2001.

According to a report into the views of US and European chief information officers by US investment bank Merrill Lynch, the predictions could be surpassed if the economy showed definite signs of recovery.

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 believe 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.

The report did contain a sting in its tail however; with 75% of the 110 CIOs questioned, saying 2002 will be a bad year for software vendors, except for the larger players like IBM, Microsoft, Dell and Compaq.


FDs optimistic for 2002

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