SMEs lead European IT spending growth


SMEs lead European IT spending growth

Karen Gomm

Small and medium sized enterprises (SMEs) led a 5.4% rise in IT spending in Western Europe last year, according to a study by market researcher IDC

IDC's "Western European SMB IT Spending 2003-2008 Forecast Update" examined Western European IT spending trends in small and medium sized enterprises from 2003 to 2008.

The figures are in line with those of the Computer Weekly IT expenditure report, produced with Kew Associates, which found that in the third quarter of 2004, companies with up to 500 staff led the upturn, increasing their IT spend at an annual rate of 8.1%. The rate for larger firms was 6.9% a year.

The research shows that IT spending in the Western European business sector generally is expected to have grown by 3.4% in 2004, while SMEs are expected to account for around 53% of last year’s total IT spend in Western Europe.

Of these, small companies (1-99 employees) are expected to show slower growth in IT spending and lag behind in the adoption of IT products.

Growth in spending by mid-sized companies (100-499 employees) is expected to turn out at 5.4% in 2004, according to IDC.

The researcher put the rise down to the increasing availability of IT products targeted at medium-sized companies and a more strategic approach to IT investments by users.

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