Survey: IT budgets to increase in 2002

Survey: IT budgets to increase in 2002

Despite the current global economic climate, more companies plan to boost rather than cut IT spending this year, according to the results of a survey by market researcher Gartner and investment banking firm Soundview Technology Group.

Overall, 60 per cent of the 1048 IT managers surveyed at Gartner's Fall Symposium/ITxpo last October said their companies will increase IT spending this year.

The petroleum, mining and energy industry will enjoy the largest projected increase in spending, with a 15.9 per cent jump from last year's spending levels predicted by IT managers. The agribusiness, fishing and forestry industry will see a 10 per cent increase and the business services industries will increase IT spending by almost 8 per cent.

"The laggard industries are now increasing their investments, while the early movers, the consumer-oriented businesses, are cutting back," said Al Case, senior vice president of research projects at Gartner.

The petroleum and energy industries did not jump on the e-commerce train during the dot-com craze of the late 1990s, and are only now beginning to invest in IT and business-to-business commerce, he said.

IT managers whose budgets will shrink are found primarily in manufacturing. The IT budget in that industry is expected to drop by 6.2 per cent. The non-durable goods manufacturing sector figures to be especially hard hit, with IT managers there expecting to see their budgets decrease by 15 per cent.

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