E-commerce expenditure to double

Toby Poston

Toby Poston

IT departments are set to double expenditure on e-commerce this year to £2.6bn.

The explosion investment in e-commerce projects ranges from the smallest to the largest companies, according to data from the latest Computer Weekly/Kew Associates survey of IT expenditure.

Organisations with more than 500 staff will boost e-commerce spending by 110% to £1.7bn in 2000. Similar surges in expenditure are being seen in medium-sized firms employing betwen 100 and 499 staff, where spending is up 153% to £343m, and in small firms with less than 100 people, who are splashing out £341m, a rise of 167%.

The proportion of the IT budget allocated specifically to e-commerce continues to grow. Last year, e-commerce projects accounted for 2.3% of the overall UK corporate IT budget. In 2000, the figure is predicted to rise to 4.3%.

The true proportion of expenditure being spent on e-commerce-related work is likely to be much higher. The £2.6bn figure refers only to IT expenditure singled out by companies as being spent directly on e-commerce, and does not take into account the billions of pounds that firms are spending on upgrading their hardware, software and networks to cope with e-business demands.

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