The first sign of a revival in IT spending emerged this week in an
exclusive Computer Weekly survey which shows IT spending growth
increasing after four quarters of decline.
Annual growth was 5.4% in the second quarter of this year,
according to the latest Computer Weekly/Kew Associates IT
expenditure survey, published every quarter. This compares with a
4.7% increase in the preceding quarter.
IT spending growth will return to double figures next year, with
small and medium-sized enterprises (SMEs) leading the way, it
found.
The survey, based on information from up to 60,000 businesses
collected in June, predicts that the downturn in IT spend will end
in 2003, with a 10% rise to £70.4bn.
The discrepancy in spending growth between companies with fewer
than 500 employees and bigger firms is as marked as ever.
During the second quarter of 2002, SMEs' IT spend is expected to
increase by 8.8%, compared to only 3.6% among larger
companies.
Public sector spending growth, fuelled by government cash for
putting services online by 2005, shows no sign of abating. It is
expected to rise by 12.3% in the second half of 2002, in comparison
to 9.5% for both the production and service sectors.
IT training budgets are expected to rise by a massive 25.6% in
2002, a figure matched only by spend to develop online information
services, which is expected to rise by 24.1%.
Expenditure on outsourcing this year is expected to grow by
17%.
Most companies are freezing recruitment and reducing their use of
contractors, cutting spending in this area by 10.7% in 2002.