Feeds

Modest IT spend uptick in '04

NOP barometer survey

  • alert
  • submit to reddit

Internet Security Threat Report 2014

US and European IT executives will increase spending on technology in the upcoming year by a moderate amount.

The 2004 instalment of the NOP World Technology Confidence Barometer has shown the overall increase in IT investment in 2004 by companies will be 5.3 per cent, according to a survey of 1,500 IT decision makers in Germany, France the UK and the US. Despite signs that the global tech sector is improving, this survey compares unfavourably with the results of last year's Technology Confidence Barometer, when IT budgets were forecast to rise 5.9 per cent in the US and 6.8 per cent in Europe.

This year a 6 per cent rise was predicted in the US, with 5.8 per cent predicted for Germany, the most optimistic of the three European nations in the study. A meagre 2.6 per cent figure was produced for France, while the UK held the middle ground with 4.7 per cent.

"With recent macro-economic data in the US all heading in the right direction, corporate investment in technology appears to be holding up well," Richard Jameson, managing director of NOP World Technology said. "In Europe, however, the investment picture remains patchy, with only German organisations planning a noticeable increase in their IT budgets after several years of close cost control."

NOP attributes the muted figures for Europe to budgetary caution among large corporations. Firms with annual sales revenues greater than $750 million are predicting growth in IT budgets of around 4 per cent for next year, with smaller firms predicting higher spending growth in percentage terms.

Government, meanwhile, is pegged to be a big spender again in 2004, with IT spending growth anticipated to grow 6.7 per cent, more than double the 3 per cent forecast growth in the manufacturing sector.

According to NOP, greater pessimism about IT spending growth among industry workers may be the result of a lack of communication between top management and IT managers. CIOs, CEOs and other senior business respondents predict growth rates of over 8 per cent, compared to a rate of 4 per cent for IT managers.

"This may indicate that senior executives have not yet communicated planned increases in IT spend to those further down the decision-making chain," NOP said.

Unsurprisingly, 31 per cent of survey respondents said that cost-cutting remains an important concern and 23 per cent said that security was a top worry. Systems upgrades were cited as important by 24 per cent, with hardware upgrades and improving business continuity planning noted by 23 per cent and 20 per cent of respondents, respectively.

"The focus of businesses in Europe and North America remains firmly on tactical, day-to-day issues," commented Jameson. "IT vendors will be required to prove the security and bottom-line benefit of their solutions. Big-ticket investment in emerging technologies looks likely to remain a hard sell for the foreseeable future."

© ENN

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.