Spending on IT hardware, software and services by UK organisations during the second quarter of this year grew by 4.6%, compared with the same period last year. In total, UK plc is expected to spend more than £65bn on IT by the end of of 2003 – an average of of £2,546 for every employee.
The figures come from the latest Computer Weekly UK IT Expenditure Report, produced by Kew Associates. The report, which is the UK’s most comprehensive study of business IT spending, is based on information from more than 60,000 IT budget holders.
In the past quarter, IT spending in the public sector grew by 8%, compared to a 5.4% rise in IT spending across the private sector, the report revealed. The findings confirm signs of recovery in IT budgets, as reported in Computer Weekly last week.
Annual spending per head ranged from £800 in the construction industry to £20,000 for employees in computer services.
The report also found that IT spending in small companies has grown at a rate of 6.8% – almost twice the rate of spending growth for larger enterprises.
Kris Wicka, managing director of Kew Associates, said spending was growing faster in small companies and the public sector because organisations in these areas were spending to catch up.