Mixed message on IT spending. (IT News).
Rapid growth for Health and Distribution sectors
Predictions for IT spending growth for next year are cautiously optimistic. once again 53% are predicting an increase in total IT spending next year, while 29% predict a decrease and the remainder expect no change. The overall results of their expected spending levels is an aggregate 2.4% increase in total IT spend between 2002 and 2003.
Health and Distribution sectors are predicting the most rapid growth in IT spending next year. In the Distribution sector 45% of organisations are predicting a 10% growth in IT spending, while in the Health sector 43% of them are predicting a 10% increase. The IT sector is predicting a further period of slow growth in IT spending.
This aggregate increase is the result of a predicted 3.6% increase in operational spending, but only a 0.6% predicted increase in capital and development spending. Organisations are expecting to spend more money on operational items, such as IT staff, software, hardware, training and data communications. However, major new developments with capital spending implications will not grow as quickly.
Local Government and Health sectors investing in networking
The breakdown of IT spending is 62.1% on operational spending, 34.4% on capital and development spending and 3.5% by end-users or other sources. Since 2000 there has been a slight increase in the proportion of total IT spend being assigned to capital and development spending.
Overall central and development spending is made.up of 46% on central systems and applications, 33% on desktop systems and applications, and 21% on network/infrastructure. Both Health and Local Government sectors reportedd a significantly higher emphasis on network/infrastructure with Local Government reporting 34% and Health reporting 36%.
Comment from the National Computing Centre
NCC expects IT user organisations to remain a little cautious and we expect this to be reflected in a modest increase in IT spending for 2003.
The high emphasis on investment in network and infrastructure applications by the Local Government sector is a clear indication of their commitment to electronic service delivery by 2005. The rapid growth in IT spending predicted by the Health sector for 2003 is welcome news as they have traditionally been the least likely to invest in IT.
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|Title Annotation:||NCC's IT Spending Survey 2002|
|Date:||Jan 1, 2003|
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