By Ben King, 18 July 2001 13:33
NEWS Despite the lay-offs, profit warnings and general economic gloom, organisations worldwide are still splashing out on technology, with more than half planning to increase their budgets. A survey of 589 government and commercial organisations showed that 56 per cent of them were planning to increase their IT spend from 2000 to 2001. However, there is a marked contrast between different sectors. Government organisations, which are seen as very keen adopters of IT, are increasing their budgets by an average of 18 per cent between 2000 and 2002 (as a percentage of revenue). The survey found even the troubled telecoms sector is planning an average 13.9 per cent increase. In contrast, in the utilities sector overall IT budgets are expected to fall 15 per cent between 2000 and 2002. While the economic downturn has not reduced overall budgets in most sectors, capital spending has been hit harder. For utilities, capital spending is set to fall 27.5 per cent. However, the banking and healthcare markets are still planning capital spending increases.
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