Confidence in IT spending stays buoyant, says NCC

Confidence in IT spending remains buoyant despite recent world events, according to the National Computing Centre's Survey of IT...

Confidence in IT spending remains buoyant despite recent world events, according to the National Computing Centre's Survey of IT Spending 2001.

The NCC research found that 57% of respondents predicted a spending increase of 2.4% in the current year, up from 1.8% last year.

An additional survey carried out in late September found that 73% of organisations had not changed their strategy. However, 27% had revised their IT spending plans as a result of changing economic prospects.

The NCC found that the value of IT spend is currently being monitored unevenly, despite the global economic slowdown. Almost 80% of the organisations surveyed exert central control over IT spending but only 56% have mechanisms for evaluating the effectiveness and value of that spend.

Local and central government, business services and larger organisations generally did best at demonstrating value for money, according to the report.

The NCC has called for greater accountability for the measurement of IT spend if IT is to be better represented at board level.

The study also revealed differences in spending between industry sectors. Total annual spend per end-user in the health sector, for example, was £1,325, compared to £13,685 in the financial sector.

The NCC identified accelerated take-up of IT by the manufacturing and distribution sectors and government as essential if competitiveness and e-government targets are to be achieved.

The survey was based on responses from 390 organisations, employing a combined total of almost 11,500 staff.

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