Three in five firms in the Republic will increase the investment they make in information technology in 2003 relative to 2002 despite the economic slowdown, a new study shows.

The survey on e-business by Deloitte & Touche found 42 per cent of firms believe strongly that IT investment represents good value for money. A further 40 per cent agreed "slightly" with the statement that IT represented good value for money, which suggested better times ahead for the IT sector.

Just 6 per cent of firms surveyed disagreed with this statement, while 12 per cent neither disagreed or agreed with the statement on IT value.

Almost half of the companies surveyed agreed strongly that the lack of availability of high-speed internet connectivity was a major issue for Irish business. Just 4 per cent of respondents disagreed with the statement: "The lack of availability of broadband is a major issue for Irish business."

The survey concluded: "There was general dissatisfaction with broadband availability and this is likely to become an increasingly important issue and may hinder IT investment."

Some 87 per cent of businesses now have a website, up from 84 per cent in February 2002. Website ownership was highest in the technology, business service and public sector. Website ownership continues to be lowest among property and construction firms.

Four in every five of these company websites are used for advertising with just over half used to interact with customers. About 40 per cent of companies use websites for recruitment and 13 per cent use them for purchasing online.

The authors of the survey suggested the adoption of new aspects of internet capability demonstrated a growing level of sophistication in relation to internet usage.

Almost six out of 10 respondents said their company made online purchases. And the number of companies buying online has increased by 6 per cent since February 2002, says the survey.

The highest level of purchasing online was among tech firms and the lowest was among those in the property and construction sectors.

Munster firms are more likely to buy online than any other region, it says.

The Deloitte & Touche eBusiness Survey is conducted by Amárach Consulting twice yearly, tracking business attitudes and trends related to technology.

The study surveys Irish-based business executives and directors. A total of 346 completed surveys were received representing firms across different industries and regions throughout Ireland.

The current survey was conducted over a two-week period up to the end of the first week in August.