Global IT spend rises, but don't get excited

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Global IT spend rises, but don't get excited

Karl Flinders

Global spending on IT will return to growth this year with small increases being implemented by some businesses, but major transformational projects will have to wait as there is no sign of a rebound to pre-recession levels.

According to Ovum, some CIOs will see increases in IT budgets of between 1% and 5%, but most IT budgets will remain flat.

Rhonda Ascierto, senior analyst at Ovum, said the increase did not represent a recovery, just an improvement on the bare minimum. "Realistically, the numbers more likely to reflect the effect of previously deep budget cuts during 2008 and the first half of 2009, which left many IT departments operating at 'bare-bones' capacity."

The number of CIOs who expected budgets to remain the same increased slightly to 42%. "It shows that many enterprises remain vulnerable and are uncertain about near-term business prospects," said Ovum.

Ovum said IT projects that have the best chance of being approved this year will not be major overhauls of IT systems "but rather those that make modifications within existing and proven boundaries in an incremental manner and in response to business changes".


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