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E-business spending explosion

Investment in e-commerce systems has rocketed in the past year, according to extensive user research

Investment in e-commerce systems has rocketed in the past year, according to extensive user research.

Spend by IT departments on e-commerce infrastructure in the UK grew 130% from £1.28bn last year to £2.94bn this year and by 2002 will comprise about 9% of the total IT budget.

These figures, based on extensive surveys of actual and planned IT spending, are from the latest half-yearly Computer Weekly/KEW Associates UK IT Expenditure Report, published this week.

The heaviest e-commerce investors are the banking and finance, computer services, and transport sectors, while the public sector trails in both actual and forecast spend, despite the Government's target to get its departments fully online by 2005.

Larger medium-sized companies (100-499 employees) saw the fastest growth in e-business spend, with a 231% increase on 1999.

However, the report indicates that this year's growth in e-commerce spend will slow down over the next two years, to average 36% growth by 2002. It remains to be seen whether this spend, £6.35bn by 2002, will realise the extravagant claims for e-business revenues many companies expect.

The 250-page Computer Weekly/KEW Associates Autumn 2000 UK IT Expenditure Report is available, price £2,500, from Julia Hoare, Computer Weekly, on 020-8652 3099.

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