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October 08, 2004 | Comments: (0)

The latest report on IT spending for 2005

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The results of a survey sent out on Thursday by Forrester Research indicate that 15 percent of companies will reduce spending on IT during 2005.

What's more, 37 percent of companies plan to spend more on IT next year than they did throughout 2004.

Those numbers are based on a survey of IT execs in the States and over in Europe. Here in North America, 46 percent of companies plan to dedicate more dollars to IT next year.

An interesting tidbit from the report is that 67 percent of enterprises have an "executive steering committee to oversee the IT portfolio." It's the organizations in which the CIO is singly responsible for IT purchasing where the most spending will come from, with a difference of 11 percent. Indeed, 44 percent of those companies where CIO decide will increase spending, while 35 percent of enterprises with the steering committees will allot more money to IT in 2005.

Meanwhile, Forrester also stated that cost-savings achieved through offshoring will not result in less IT spending. To wit, 48 percent of North American companies that tap into offshore outsourcers will spend more on IT next year, but among companies that do not outsource to offshore locations, 38 percent will spend more.

Posted by Tom Sullivan on October 8, 2004 07:23 AM

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