Spending on IT in US to increase next year

Spending on Information Technology in the US will grow by 2

Spending on Information Technology in the US will grow by 2.5 per cent next year according to American internet brokerage firm Gartner.

In survey of 1,048 IT professionals in the US responsible for more than $35bn in technology investments, it was estimated that technology spending in the US was 2.5 per cent higher than in 2000 while 2002 is likely to see a further increase of 1.5 per on 2001.

It also shows that enterprises will earmark 75 per cent of IT funds next year for maintenance and ongoing costs of technology essential to business operations.

The rest of the technology budget is "in play,", according to the survey although it anticipates considerable difficulty in convincing CEO’s to invest in new projects.

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That spending is slated to increase at all during 2002 — even at a negligible rate - the survey says, indicates that the dotcom slump has likely reached bottom.

According to the survey the following technology areas will have a greater chance of winning approval in enterprises' 2002 IT budgets:

  • Security and business continuity
  • Storage
  • Web-based applications
  • Personal digital assistants
  • Web integration services.

Areas less likely to receive enterprise budgets include:

  • Mainframe
  • Contract labor services
  • Desktop products and services

The significance of this survey lies in its timing, Gartner says — three weeks after the attacks of 11 September 2001 — because it signals a stay-the-course attitude about IT spending, despite a faltering US economy and fears of terrorism.