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Understanding IT budget trends H2 2007 (Customer Focus)

Product Type: Market Research Report
Published by: Datamonitor
Published: April 2008
Product Code: R313-31808
Description
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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