Europe shows slowest rate of IT budget growth worldwide

Computer Weekly and TechTarget's 2015 IT Priorities report reveals Europe lagging behind rest of world in IT budget growth

Despite an increase in global IT budgets, Europe has predicted the lowest growth for 2015 compared to other global regions, a Computer Weekly/TechTarget survey has revealed.

The 2015 IT Priorities report, which surveyed more than 1,000 IT professionals worldwide, found that only 3.6% of European businesses predicted an increase in IT budgets this year, compared to more than 9% in the Middle East, 8.7% in South America, 8.7% in Africa, 8.4% in Asia Pacific and 5.7% in North America.

Across Europe more than a third of businesses (37%) said they expected their IT budgets to stay the same for 2015. Just 18% predicted an increase of more than 10%, while 19% predicted an increase of 5%-10% and 10% forecasting an increase by less than 5% (Image 1)

Last year, 36% predicted European IT budgets to stay the same when compared to 2013 with 19% anticipating an increase of more than 10%.

Across the pond, 20% of North American businesses predicted an IT budget increase by more than 10%. Increases in budget by 5-10% were cited by 30% of survey respondents (Image 2)

IT priorities
Image 1

Asia Pacific also predicted higher increases than Europe, with 32% forecasting an increase on more than 10%, and 33% expecting increases of between 5%-10% (Image 3).

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Image 2

Within Europe, Germany cited the highest increase in IT budgets for 2015 with 18% IT professionals expecting budget increases of more than 10%, and 20% of them forecast an increase of 5%-10%.

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Image 3

Of the UK IT professionals surveyed, 16% predicted an increase of more than 10% and 25% predicting increases of 5%-10%.

France had the lowest growth rate in Europe with only 13% predicting an increase by more than 10% and 15% predicting an increase by 5%-10%.

What’s the money going on?

IT priorities
Image 4

Globally, the most respondents (48%) said they plan to use or maintain their budgets in software and 45% said hardware. Thirty-nine percent cited using or maintaining budgets for cloud services (Image 4).  

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Across Europe, as a whole, 39% of businesses said budgets will increase in cloud services and 34% predicted software. Hardware was cited by 31% of businesses, followed by outside services at 27%, staff at 25% and maintenance at 18% (Image 5)

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The UK, Germany and France showed different priorities for 2015 with most UK IT pros (40%) predicting that their budget increases will be spent on staff, whereas in France, most (44%) said their budget increase will be spent on more cloud services. In Germany the majority (39%) said they plan to use budget increases on investments in hardware.

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Image 7

Europe as a whole predicted a decrease in spending on hardware (44%) (Image 6)

Globally the majority of respondents (40%) said their companies will focus on data centre consolidation in 2015(Image 7). 

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For 2015, 38% of European IT professionals said their companies plan to implement mobility as a main priority. This was followed by datacentre consolidation (33%), big data (26%), compliance (22%), unified communications (22%), social media collaboration (20%), video conferencing (14%), and internet of things (13%) (Image 8)

In the UK, mobility (42%) and compliance (31%) were top priorities for 2015 – a similar picture in Germany, which put mobility as top (34%), followed by compliance (28%).

However, despite France citing mobility as top priority (40%), this was followed by datacentre consolidation (34%) and big data (27%). Only 15% of French IT pros said compliance was a priority for them this year.

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