A study conducted by Accenture shows a majority of technology and business executives expect their companies’ IT spending to rise over the next three years. Accenture analysts said that these new expenditures, which are projected to average 5.5 percent in the next year alone, would mostly be “quality” IT spending, meaning that it would be bolstered by real business growth.
The findings were based on surveys of 300 executives at U.S. companies with average revenues of $8 billion. Participants included CIOs and CTOs, as well as various C-level executives outside of the technology sphere. About six out of 10 of all the respondents said they believe their organizations’ IT spending will increase in the next few years. Also, although more than two-thirds (69 percent) of executives said that IT spending at their organizations has risen during the past three years, about one-third (32 percent) reported that spending has been less than it should be.
The greatest impetus behind new IT expenditures in the coming years will be “new business initiatives,” some 21 percent of the study’s participants indicated. “Upgrading legacy systems” and “adopting new technologies” were second and third, respectively, with 19 percent and 18 percent of those respondents selecting those motivations. The second-tier responses included integration efforts following a merger or acquisition (13 percent), regulatory compliance requirements (10 percent) and information security requirements (7 percent).
Not everyone reported such a rosy outlook, though. About 13 percent of executives said they thought their companies’ IT spending would actually decrease during that same time span. Given the large number of important technology product releases expected in the next few years, though, they might have to revise that prediction down the road.
For more information, see http://www.accenture.com.