UK SMEs bolder on IT spending than North American counterparts

More UK SMEs intend to increase their IT...

More UK SMEs intend to increase their IT spending next year compared to their North American cousins.

A survey of 772 SMEs in the US, Canada and UK, commissioned by the Computing Technology Industry Association (CompTIA), found firms overall are being more cautious on their spending in response to the recession.

Although most SMEs are confident about growing over the next 12 months, they are being more conservative about IT expenditure.

UK companies, however, said they would be spending more, with 56% planning an increase in their technology budget. This compares with 54% last year.

The overall study found that 51% of those surveyed intend to increase their tech spending in the next 12 months, and 49% expect their tech spending to remain flat or to decline.

By comparison, 62% of firms said in last year's study they planned to boost spending, while 38% said it would remain flat or decline.

Todd Thibodeaux, chief executive officer of CompTIA, said, "In the past, tech spending might have been one of the first line items slashed in a tough economy.

"Today, SMEs are savvier because they rely on technology for an increasing amount of their core business operations. It is encouraging to see that the majority of SMEs plan to maintain, if not increase, current tech spending during this time of economic uncertainty."

Though wary about current economic conditions, firms are hopeful that business will grow over the next 12 months. The survey found that 85% plan to hire new employees, 54% anticipate revenue growth of 10% or more, and 40% plan to add new business locations.

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