Product Type: Market Research Report
Published by: Datamonitor
Published: April 2008
Product Code: R313-31808Description INTRODUCTION
Datamonitor's Technology Trends survey, carried out throughout 2007, asks 1,000 IT managers how they are currently spending their IT budgets and how this is likely to change in 2008. This brief provides an analysis of the survey results and indicates where enterprises will spend the greatest part of their IT budgets in 2008, both in terms of technologies and providers.
Scope
Analyses how enterprises' IT budgets have changed since 2006-2007 and how they are likely to change in 2007-2008. Discusses variations in IT budget changes by vertical market and geography. Provides an overview of the proportion of enterprises' IT budgets that is spent on hardware, software and services. Reviews enterprises' choice of IT provider and how this differs by geography.
Highlights
Datamonitor's survey of IT managers in Western Europe, North America and Australia reveals that enterprises' key goals in 2007 were standardizing infrastructure technologies and simplifying systems. These priorities have not changed from 2006 and reflect the increased complexity of networks and software. Unsurprisingly, enterprises in financial markets are the most likely to be increasing their IT budgets in 2008. These organizations typically have greater cash flows which gives them more flexibility and capabilities to invest in IT and a high proportion of enterprises (27%) in this vertical are increasing their IT budgets significantly (by 6%+). Expenditure on internal development and maintenance has increased by three percentage points since Datamonitor's Technology Trends survey in 2006. Despite this, two thirds of IT budgets are spent externally as enterprises continue to need additional support and expertise that cannot be sourced in house.
Reasons to Purchase
Understand enterprises' major strategic goals in 2007 in order to target your marketing campaigns effectively. Discover how enterprises' IT budgets are set to change in 2008 and learn which verticals and geographies are most likely to increase their budgets. Find out how enterprises' IT budgets are split by entity and type of provider.
Table of Contents - DATAMONITOR VIEW
- CATALYST
- SUMMARY
- ANALYSIS
- The priority for enterprises in 2007 is standardizing infrastructure technologies
- Enterprises' leading strategic goals are standardizing and simplifying systems
- Although offshoring and outsourcing are not a priority for the majority, there are regional variations
- Delivering new business functionality and raising efficiency are also important
- The majority of IT budgets will remain flat or increase in 2008
- A high proportion of enterprises' IT budgets will remain flat in 2008
- Enterprises in Spain, Benelux and Australia are more likely to increase their IT budgets in 2008
- Enterprises in financial industries are the most likely to be increasing their IT budgets
- There are very few changes in the way IT budgets are split by entity
- Hardware and software still comprise over 60% of enterprises IT budgets
- Enterprises in the media industry are spending a higher proportion of their IT budget on hardware in 2007
- Enterprises continue to place importance on internal development and maintenance
- The in-house team has slightly more weight when addressing IT issues
- The proportion of enterprises' IT budgets spent on internal development has increased slightly
- Enterprises in France and Australia spend a greater proportion of their IT budgets on internal development
- SUMMARY
- There are few significant changes expected in IT budget expenditure in 2008
- APPENDIX
- Additional Demographic Information
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: What are your major strategic goals for 2007 (Please rate 1-4, where 1 is uninfluential and 4 is highly influential)?
- Table 2: Please rate the importance of the following objectives to your IT investment strategy in 2007 (where 1 = not an objective and 4 = top priority objective)
- Table 3: How has your IT budget grown or shrunk from 2006-7, how do you expect it to change in 2007-8?
- Table 4: How do you expect your IT budget to change in 2007-8?
- Table 5: How do you expect your IT budget to change in 2007-8?
- Table 6: How are you spending your (external) IT budget this year?
- Table 7: How are you spending your (external) IT budget this year?
- Table 8: Which type of provider are you most likely to approach first to address your organization's IT needs? Rate 1-4 (1 = unlikely, 4 = highly likely)
- Table 9: With whom are you spending your IT budget in 2007?
- Table 10: With whom are you spending your IT budget in 2007?
- Table 11: What is your estimated 2007 IT budget to the nearest $m?
- Table 12: What is your estimated 2007 IT budget to the nearest $m?
- List of Figures
- Figure 1: Enterprises rated standardizing infrastructure technologies as their major strategic goal
- Figure 2: Raising efficiency and delivering new functionality are enterprises' top objectives
- Figure 3: Enterprises' IT budgets are most likely to stay the same next year
- Figure 4: Enterprises in France and Germany are least likely to be increasing their IT budgets
- Figure 5: A higher proportion of enterprises in financial industries are increasing their IT budgets next year
- Figure 6: IT budget splits by entity have changed slightly from 2006
- Figure 7: Enterprises in the media industry spend a higher proportion of their IT budget on hardware
- Figure 8: Enterprises are most likely to approach their in-house team to address their IT needs
- Figure 9: Enterprises spend a larger proportion of their budgets internally
- Figure 10: Enterprises in France and Australia spend a greater proportion of their budgets internally
- Figure 11: IT budget variations for the survey sample by geography
- Figure 12: IT budget variations for the survey sample by industry
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