Information Technology spending is gaining momentum, with investments in software, infrastructure, and other areas of IT growing 4.3% in Q3 2003, according to AMR Research's quarterly IT spending figures. Released Monday at AMR's Fall Executive Conference, the IT survey results indicate momentum is continuing to build in IT spending for 2004 and beyond.
Key findings include:
IT budgets have shown continued momentum building, with growth rates
increasing steadily to 4.3% in Q3 2003 up from 3.4% in Q2
2003. IT budget growth in Q3 2003 also reflects a significant leap
from the same quarter in 2002, which saw growth nearly stagnant at 0.2%.
Customer Service will be the central focus of 2004, with 38% of
respondents claiming that customer-driven issues like loyalty and
retention will have the greatest influence on IT investments over the
next 12 months.
Networking/telecommunications will get the most investment, with 24% of respondents giving the area top priority in the next 12
months. The results show networking and telecommunications are vital
to real-time connectivity for customers, suppliers, and employees.
Strategic Technology Infrastructure initiatives like security and
integration are also a top priority in 2004, with investment plans
soaring to 21% in Q3 2003 from 12% in Q1 2003
By far, enterprise resource planning (ERP) vendors are viewed as the
best source for complete, integrated applications. Companies rely on
best of breed vendors for cost effective point products.
To complete the survey, AMR conducted 200 phone interviews with companies in the U.S. during October 2003. Respondents were screened for active participation in their companies' business and information technology decisions. The study was designed to capture a representative sample of manufacturing and service industries with total employees of 1000 or more.