Survey Sees IT Spending Rebound

Ann All
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Ten Key Actions to Reduce IT Infrastructure and Operations Costs

Reduce costs by as much as 25 percent with these tips from Gartner.

Some three months ago I wrote about Gartner and IDC boosting their IT spending forecasts for the latter half of 2011. Gartner predicted worldwide IT spending would increase 7.1 percent this year for a total of $3.7 trillion, a slightly more bullish outlook than its first-quarter estimate that global IT spending would grow 5.6 percent. IDC said U.S. IT spending would increase 5.6 percent this year, outperforming a projected 3 percent growth in gross domestic product. (Of course, that GDP estimate looks pretty halcyon now, given the current dismal growth rate.)


An InformationWeek survey of executives at companies on its InformationWeek 500 list found budget pressures easing at those companies -- to a surprising degree. According to the survey, only 11 percent of respondents expected reductions in their IT budgets this year. That's a big drop from two years ago, when 42 percent thought budgets would be sliced. Sixty-nine percent of respondents believe their 2011 IT budgets will be bigger than last year's, up from 57 percent in 2010 and 37 percent in 2009.


Just 29 percent of respondents mentioned lowering IT and business costs as one of their innovation priorities for 2011, behind making business processes more efficient (54 percent), introducing new IT-led products or services for our customers (45 percent), getting better business intelligence to employees, more quickly (40 percent) and improving Web operations and customer experience (30 percent). That's a big change from 2009, when 47 percent of the InformationWeek 500 companies named cost cutting as a top priority. As the article about the survey notes, "that's the biggest move in our data from recession to recovery."


Spending remains tight as a percentage of revenue at 3 percent, a continuation of a trend InformationWeek has observed for the past decade. Between 2001 and 2004, IT spending ranged from 3.4 percent to 3.9 percent, but it shrank to a range of 2.7 percent to 3 percent in the past few years.


While financial institutions took a serious hit during the recession, they've bounced back and are spending big bucks on IT. They're spending on average 8.7 percent of revenue on IT, up from 7.6 percent in 2009.

Add Comment      Leave a comment on this blog post
Oct 12, 2011 7:12 AM intercom system installation intercom system installation  says:

No doubt there is heavy growth in IT sector. The only draw back behind it Is freelance which effects it a lot. other wise it's neat and clean business....


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