Retailers and business services firms are leading the
growth in IT spending in the UK, as organisations step up their
investment in online commerce and knowledge management
systems.
The latest Computer Weekly/Kew Associates research shows that
retailing, wholesaling, hotels and catering firms increased their
IT spending at a rate of 7.6% over the 12 months to the end of
March.
These sectors are investing in IT at a higher rate than the rest
of the economy, which saw IT spending increase by 5.5% in the past
year, up from 5.2% a year ago, the research reveals.
The upturn in retail investment comes as major retailers invest
in developing internet sales operations and improving the
management and efficiency of supply chains.
Last month,
Marks & Spencer became the latest retailer to increase its
supply chain and technology spending. Spending rose from £39m to
£114m over the past year, and online sales grew by 60% to
£160m.
“Not only are they improving the customers’ online shopping
experiences, retailers are internet-enabling their back office and
supply chains to ensure that the customer receives the best
possible service – something that people are responding to by
digging deeper into their pockets,” said David Roberts, chief
executive of IT directors group The Corporate IT Forum.
Business services, which include accountancy, legal and
advertising companies, are also increasing IT budgets, with the
rate of spending growth rising to 7.8% over the past 12 months.
Malcolm Simms, IT director at international law firm Eversheds,
said the sector was taking a more mature approach to IT investment.
The firm is
consolidating two datacentres through an outsourcing
agreement with Computacenter.
It is also working on an application strategy that would give
its lawyers access to cases via an Outlook interface from anywhere
in the world. “You could say it was a little bit of catch up, but
we will have datacentres that are up there with the best,” Simms
said.
Financial services has experienced below average growth of 4.8%,
down from 6.5% the previous year. IT spending in the insurance
sector was only growing at 2.4%.
“Financial services spent any investment necessary to
comply with Sarbanes-Oxley. Having done so, they have now blown
the money and there is no reason to spend yet more,” said Philip
Virgo, strategic adviser at the Institute for the Management of
Information Systems.
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