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E-business projects to drive spending growth

E-commerce projects are set to drive UK IT departments' spending growth in 2005-2006, according the latest Computer Weekly IT Expenditure Survey, produced by Kew Associates.

The focus on e-commerce highlighted in the spending survey concurs with a report published by the Confederation of British Industry last week. The  E-Value Matters report said the UK had reached the "end of the beginning" of e-business transformation, with automation of existing processes evolving into a more fundamental transformation of business practices.

The Computer Weekly study, based on information from a   database of more than 60,000 IT budget holders, said heavy investment in customer relationship management and enterprise resource planning systems appears to have peaked. Users were now seeking to extract value from their investment, said Kris Wicka, author of the spending survey.

High spending growth in storage was also receding, said Wicka. "There is still a high demand but increasing price/performance means users are getting more for less," he said.

UK IT expenditure growth highlighted the impact of comodisation of desktops and servers, the continuing importance of disaster recovery and the growth in outsourcing, said Wicka.

Spending on software has continued to grow, partly due to firms installing more PCs and upgrades to operating systems and other software, even though many users are driving down costs by deploying off-the-shelf products.


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