Understanding IT budget trends H1 2007 (Customer Focus)

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

The majority of enterprises' IT budgets will remain the same or increase in the coming year

A relatively high percentage of enterprises' IT budgets have grown since 2006-2007

A larger proportion of enterprises' IT budgets will remain flat in 2007-2008

There are distinct differences in IT budget size by vertical sector

Financial services institutions are likely to have larger IT budgets

IT budget growth varies by industry and geography

Enterprises in financial markets and the energy industry are most likely to increase their IT budgets

A large proportion of enterprises in Italy and Benelux are planning to increase their IT budgets next year

Hardware and software expenditure make up the majority of enterprises' IT budgets

Hardware is still the largest area of expenditure in enterprises' IT budgets

Spend on hardware appears to be decreasing while spend on software and services is gradually increasing

There are variations in IT budget allocation by geography

Improving customer satisfaction is the key objective for enterprises' IT strategies

Enterprises' IT investment strategies are fuelled by improving customer satisfaction.

Standardization and simplifying systems are top priorities for enterprises

Outsourcing and offshoring are a lower priority

Enterprises are most likely to approach their in-house team first to address their IT needs

The majority of enterprises would use an in-house team as their first choice for their IT needs

Italian enterprises are more likely to approach a technology vendor as their first choice

Enterprises tend to spend the largest proportion of their IT budget on internal development

SUMMARY

Enterprises will continue to invest in technology driven by improving customer service

APPENDIX

Additional Demographic Information

Definitions

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: How has your IT budget grown or shrunk from 2006-7, how do you expect it to change in 2007-8?

Table 2: How has your IT budget grown or shrunk from 2006-7, and how do you expect it to change from 2007-8?

Table 3: What is your estimated 2007 IT budget to the nearest $m?

Table 4: How do you expect your IT budget to change in 2007-8?

Table 5: Has your IT budget grown from 2006-7, and how do you expect it to increase in 2007-8?

Table 6: How are you spending your (external) IT budget in 2007? How will it change in 2008?

Table 7: How are you spending your (external) IT budget this year?

Table 8: How are you spending your (external) IT budget in 2007?

Table 9: Please rate the importance of the following objectives to your IT investment strategy in 2007

Table 10: What are your major strategic goals for 2007?

Table 11: Which type of provider are you most likely to approach first to address your organization's IT needs?

Table 12: Which type of provider are you most likely to approach first to address your organization's IT needs?

Table 13: With whom are you spending your IT budget in 2007?

Table 14: What is your estimated 2007 IT budget to the nearest $m?

List of Figures

Figure 1: The majority of enterprises' IT budgets have stayed flat or increased slightly

Figure 2: 2007-2008 will see a larger proportion of IT budgets remaining flat

Figure 3: Financial services institutions have far larger IT budgets than those in the government sector

Figure 4: A majority of enterprises' IT budgets in energy/utilities and financial markets are set to grow

Figure 5: A high proportion of Italian enterprises expect their IT budgets to increase in 2007-2008

Figure 6: A large proportion of enterprises' IT budgets is spend on hardware and software

Figure 7: Enterprises are spending slightly less on hardware and more on software and services

Figure 8: Enterprises in Australia spend the greatest part of their IT budget on hardware

Figure 9: Increasing customer satisfaction and raising efficiency are the main objectives from IT investments

Figure 10: Standardizing and simplification are viewed as major strategic goals

Figure 11: Enterprises will use an in-house team as a first choice to address their organization's IT needs

Figure 12: Enterprises would all use their in-house team as a first choice with the exception of those in Italy

Figure 13: Internal spending comprises the largest proportion of enterprises' IT budgets

Figure 14: IT budget variations for the survey sample by geography