Technology Spending to Show Moderate Improvement

BOSTON, MA —Enterprises are expected to increase their technology budgets by an average of 3.4% over the next 6 to 12 months, according to a recent survey of CIOs and other IT purchasing decision makers conducted by Aberdeen Group, a leading market analysis and positioning services firm. In a similar survey in March, CIOs indicated their overall IT budgets would increase on average 2.7% over the next 6 to 12 months.

“The survey shows that IT buyers are gradually opening their wallets,” said Hugh Bishop, Aberdeen Senior Vice President and author of the new report, Technology Forecasting Consortium: 2003 User Buying Intentions - Update. “Their priority is to spend money on technology solutions that enable them to optimize existing business opportunities and processes through superior service.”

Key findings of the report, based on a recurring survey of IT executives in the Technology Forecasting Consortium (TFC), Aberdeen’s end-user advisory council that assists in the early identification of trends in the IT market and the prediction of user buying intentions, include:

The top five application categories (out of 34) with a positive intent to purchase are content/document management applications; customer service/support; employee self-service; help desk and field services applications; and e-mail/messaging.

Compared to the March survey, the average intent to purchase for all 34 application categories combined decreased slightly, as did the average priority to purchase. Buyers are still hesitant. Technology suppliers need to introduce new pricing models and purchasing programs to stimulate demand. They must also develop better channel programs to reach mid-sized enterprises. The top three technology infrastructure solutions with a positive intent to purchase are security gateways and services; network and systems management; and application development tools.

This new report is available on www.aberdeen.com in two formats. An abridged version is available at no charge, and the full report — with complete survey results — is available for $495.

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