Business climate boosts IT spend

Forrester reports growth in IT spend

IT directors have increased their investment in new technology projects in the past three months, citing strong business conditions for the growth, says research.

The quarterly Chief Information Officer Confidence Poll from Forrester Research, published last week, shows that 78 per cent of businesses surveyed saw an increase in spending compared with the same period last year.

Some 44 per cent of firms witnessed more than a five per cent increase in spending, while only 10 per cent said budgets had decreased.

The spending decisions reflect an increased confidence in future business and economic climates, with 86 per cent of firms expecting improvements in 2006.

And 81 per cent of the US chief information officers (CIOs) interviewed expect to see further increases in IT spending next year.

Just six per cent of firms expect to under-spend on their IT budget this year, while 25 per cent think they will exceed allocated finances.

CIOs working at companies with more than 5,000 employees were more optimistic about budgetary increases than IT managers working at smaller firms.

Some 93 per cent of businesses with more than 5,000 staff reported a stronger business climate, which is helping IT investment, while 79 per cent of smaller firms expect the situation to remain the same.