Is the decline in IT spending perception or reality?

Companies are still making Information Technology (IT) investments--they are just much more prudent about where they spend

Companies are still making Information Technology (IT) investments--they are just much more prudent about where they spend

IT expenditure, as a percentage of company revenue, dropped one percent the past year, from 4% in 2001 to 3% in 2002, according to AMR Research's annual IT Spending Study. This decrease straddles perception and reality: The reality is that companies have decreased their spending and are more cautious about how they invest.

Companies are once again centralising IT and streamlining internal operations, with less focus on projects that aren't necessary to improving business process management. There is a clear shift of importance from Return on Investment (ROI) to revenue generation.

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www.amrresearch.com
This was first published in July 2002

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