Growth Slow, But Opportunities for Storage and Supply Chain Applications Strong

Even though IT budgets were slashed at most companies last year, there are opportunities where IT spending can make a difference. According to a survey done by Forrester Research Inc., manufacturers, retailers and other supply chain partners will likely invest in IT products and services.

“IT products and services that shave costs through efficiency gains, help retain customers or solve the integration dilemma in corporate IT have the best chance of success this year,” said Tom Pohlmann, researcher at Forrester.

The report forecasts a 1.9 percent spending increase in general this year, with a 2.6 percent increase from midsize firms.

Other key findings:

• In mid-2002, fewer than one in five firms were considering a CRM or ERP software purchase. Demand returned to pre-2002 levels.

• Forty-five percent of companies will buy business intelligence tools in 2003, including data mining software.

• Sixty percent of firms will buy disaster recovery products or services.

• Thirty-six percent of IT shops will reduce their use of outside consultants and contractors from last year, continuing a well-established trend.

Information came from the February 2003 Forrester report, “Benchmark North America: Business Technologies Data.” For more information, visit www.forrester.com

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