Understanding IT budget trends H1 2007 (Customer Focus): Industry Research Report

Understanding IT budget trends H1 2007 (Customer Focus)

Published Date: March 2008

Published By: Datamonitor

Page Count: 24

Order Code: R313-31592

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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

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