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Survey of IT spending 2001. (IT News).

This authoritative independent survey has been carried out annually over the last 20 years and gives a yearly snapshot of key trends and drivers in the IT industry. The 2001 survey is based on responses from 390 organisations employing a combined total of nearly 11,500 staff, representing a total IT spending power of over 1 billion [pounds sterling]. The data paints a picture of wide disparities in IT spending across UK sectors. The survey forms the lust part of the NCC's Survey of IT Users; the second part, due in January 2002, looks at IT Strategy trends.

Confidence in IT spending remains buoyant

A modest majority of respondents (57%) predicted a spending increase of 2.4% in the current year, up from 1.8% the previous year. In an additional survey of a smaller subset of respondents carried out in late Septeraber to gain an update, 73% indicated that spending plans remained unchanged. A significant minority of 27% however had revised IT spending plans in the light of changing economic prospects.

Health, Local Goverment are Cinderellas of IT spend

Wide differences in spending between sectors are revealed. Median annual IT spend combining all sectors is 3,022 [pounds sterling] per end user, but total annual spend per end user in the Health sector (1,325 [pounds sterling]) is around 10% of that in the Finance sector (13,685 [pounds sterling]).

Local Government's total combined IT spend (2,201 [pounds sterling]) is half that of Central Goverment's (4,444 [pounds sterling]). The difference between Local and Central Government for capital spend per end user is even mom marked (463 [pounds sterling]: 1,333 [pounds sterling]) Big variations emerge in terms of IT staff per end user. Although large organisations benefit from economies of scale, the ratio of IT staff to users varies significantly between sectors: in Finance it is 106 IT staff per 1000 users, in Health it is 19:1000.

Value of IT spend monitored unevenly

Gaps also appear between the level and control of spending, and the level and means of evaluation: Almost 80% of organisations exert central control over IT spending but only 56% have mechanisms for evaluating the effectiveness and value of that spend. Local and Central Government, Business Services and larger organisations generally did best at using methods to demonstrate value for money. View of nearly half of respondents: `pace of technology adoption too slow" There is also divergence between the rate of actual adoption of IT, and the rate perceived as appropriate by respondents. This actual adoption rate correlates closely with levels of spending and with ratios of IT staff per end users. The IT sector pursues an energetic rate of IT adoption; Local and Central Government, Manufacturing and Distribution take a more conservative approach.
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Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Database and Network Journal
Date:Dec 1, 2001
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