Understanding IT Budget Trends H1 2007 (Customer Focus)

Table of Contents

• DATAMONITOR VIEW
• CATALYST
• SUMMARY
• ANALYSIS
• The majority of enterprises' IT budgets will remain the same or increase in the coming year
• A relatively high percentage of enterprises' IT budgets have grown since 2006-2007
• A larger proportion of enterprises' IT budgets will remain flat in 2007-2008
• There are distinct differences in IT budget size by vertical sector
• Financial services institutions are likely to have larger IT budgets
• IT budget growth varies by industry and geography
• Enterprises in financial markets and the energy industry are most likely to increase their IT budgets
• A large proportion of enterprises in Italy and Benelux are planning to increase their IT budgets next year
• Hardware and software expenditure make up the majority of enterprises' IT budgets
• Hardware is still the largest area of expenditure in enterprises' IT budgets
• Spend on hardware appears to be decreasing while spend on software and services is gradually increasing
• There are variations in IT budget allocation by geography
• Improving customer satisfaction is the key objective for enterprises' IT strategies
• Enterprises' IT investment strategies are fuelled by improving customer satisfaction.
• Standardization and simplifying systems are top priorities for enterprises
• Outsourcing and offshoring are a lower priority
• Enterprises are most likely to approach their in-house team first to address their IT needs
• The majority of enterprises would use an in-house team as their first choice for their IT needs
• Italian enterprises are more likely to approach a technology vendor as their first choice
• Enterprises tend to spend the largest proportion of their IT budget on internal development
• SUMMARY
• Enterprises will continue to invest in technology driven by improving customer service
• APPENDIX
• Additional Demographic Information
• Definitions
• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

List of Tables

• Table 1: How has your IT budget grown or shrunk from 2006-7, how do you expect it to change in 2007-8?
• Table 2: How has your IT budget grown or shrunk from 2006-7, and how do you expect it to change from 2007-8?
• Table 3: What is your estimated 2007 IT budget to the nearest $m?
• Table 4: How do you expect your IT budget to change in 2007-8?
• Table 5: Has your IT budget grown from 2006-7, and how do you expect it to increase in 2007-8?
• Table 6: How are you spending your (external) IT budget in 2007? How will it change in 2008?
• Table 7: How are you spending your (external) IT budget this year?
• Table 8: How are you spending your (external) IT budget in 2007?
• Table 9: Please rate the importance of the following objectives to your IT investment strategy in 2007
• Table 10: What are your major strategic goals for 2007?
• Table 11: Which type of provider are you most likely to approach first to address your organization' s IT needs?
• Table 12: Which type of provider are you most likely to approach first to address your organization' s IT needs?
• Table 13: With whom are you spending your IT budget in 2007?
• Table 14: What is your estimated 2007 IT budget to the nearest $m?

List of Figures

• Figure 1: The majority of enterprises' IT budgets have stayed flat or increased slightly
• Figure 2: 2007-2008 will see a larger proportion of IT budgets remaining flat
• Figure 3: Financial services institutions have far larger IT budgets than those in the government sector
• Figure 4: A majority of enterprises' IT budgets in energy/utilities and financial markets are set to grow
• Figure 5: A high proportion of Italian enterprises expect their IT budgets to increase in 2007-2008
• Figure 6: A large proportion of enterprises' IT budgets is spend on hardware and software
• Figure 7: Enterprises are spending slightly less on hardware and more on software and services
• Figure 8: Enterprises in Australia spend the greatest part of their IT budget on hardware
• Figure 9: Increasing customer satisfaction and raising efficiency are the main objectives from IT investments
• Figure 10: Standardizing and simplification are viewed as major strategic goals
• Figure 11: Enterprises will use an in-house team as a first choice to address their organization' s IT needs
• Figure 12: Enterprises would all use their in-house team as a first choice with the exception of those in Italy
• Figure 13: Internal spending comprises the largest proportion of enterprises' IT budgets
• Figure 14: IT budget variations for the survey sample by geography