Online sales to octuple: Inform

Online sales to octuple: Inform

CIOs and IT managers are rethinking the way they want to buy from resellers, according to a recent survey conducted by channel research company Inform.

The survey, called Channel Performance 2001, claims up to a third of senior IT executives are planning to make the majority of their IT purchases over the Internet by 2002.

Inform's research suggests that currently only four per cent of IT execs conduct the bulk of their company's IT purchases via the Web. A figure Inform believes is set to increase eight-fold in two years.

Large corporations are most likely to adopt online procurement, according to the survey, which means resellers selling into the big end of town may have to "fine-tune" their online strategies to accommodate the shift in buying attitudes.

Around 63 per cent of companies with an annual IT budget of $5-10 million, and 46 per cent of companies with an IT budget in excess of $10 million surveyed for the report claim they will be purchasing the majority of IT goods online from resellers by 2002.

With the channel touting services as the big money spinner, the survey reveals corporate execs will be taking a conservative approach with online procurement. Inform claims the tendency for companies will be to buy lower priced commodities and consumable products online, while still meeting face-to-face for expensive and complex purchases.

The survey also reveals the number of companies not planning to purchase IT goods online will reduce from 74 per cent in 2000 to 34 per cent by 2002. Meanwhile a minority (13 per cent) of died in the wool IT execs plan to cling to traditional purchasing methods.

Inform's survey went out to 5000 IT executives with 230, or 4.5 per cent, responding.

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