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IDC predicts more expenditure in corporate Web

IDC predicts more expenditure in corporate Web

Recent research from IDC Australia suggests Internet-based projects are becoming a mainstream part of the overall enterprise IT spend, taking up an increasing share of IT budgets.

A report by IDC Australia suggests a wide variety of businesses expect to increase the portion of their IT budget devoted to spending on Internet, Extranet and Intranet initiatives between 2000 and 2001.

Quashing concerns Web-based projects will suffer along with the current fragile economic environment, and the closure of several Web development and integration firms, the IDC figures suggest the larger the company, the more likely it will increase such spending - in some cases, by over 25 per cent in the next 12 months.

The survey of over 500 IT departments suggests the departments themselves are undergoing changes to accommodate the growth of Internet technologies. The report suggests it is less likely large companies will have teams devoted to Internet projects, as they are now enough of a priority to be a mainstream part of the IT spend rather than a sideline initiative.

The research also indicates Web sites are ubiquitous across large organisations. Over 91 per cent of large organisations (companies with over 500 employees) have a Web site, while 84 per cent of medium-sized businesses (100-499 employees) and 52 per cent of small businesses (under 99 employees) maintain a site.

IDC analyst Brooke Galloway said the research did not ask respondents exactly what they would be spending the increasing amount on but suggests there could be improvements in software licensing, implementation, professional services costs and training.

"As more companies brag about sizeable savings through online order entry systems and improved customer support at reduced costs, management and IT are fast realising that Internet infrastructure is not only a competitive necessity but can also help companies gain an edge," she said.


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