Technology Spending: IT Budgets Reflect Priorities, Needs

Across all industries, technology spending is beginning to rebound. A recent survey of more than 150 IT executives by AberdeenGroup found that 87% plan to adjust their IT budgets during the next 6 to 12 months. The average change in IT budgets forecasted for the remainder of 2003 is a 3.4% increase. However, nearly 20% of surveyed firms plan to decrease their IT budgets. Firms appear to be accelerating their plans on purchasing technology infrastructure, and the purchasing cycle for infrastructure appears to be ahead of the application software cycle, Aberdeen notes.