CIO Magazine Tech Poll -- 5/1/02...Investments in Hardware and Infrastructure a Good Sign...
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>>>Posted: May 1, 2002
TECH POLL REPORT
Tech Spending Dips
Investments in Hardware and Infrastructure a Good Sign
BY LORRAINE COSGROVE WARE
CIOs' outlook on technology spending was slightly less rosy in April, according to CIO Magazine's latest Tech Poll. However, companies will resume spending again in key areas that were put on hold in 2001, signaling that restraints caused by the recession are beginning to lift.
Expected budget increases in the coming 12 months dipped to 6%, down from 7.7% reported in the March Tech Poll. Additionally, the CIO Magazine Tech Future Growth Index (TFGI), which projects IT activity over the next 12 months, slipped from a six-month high of 2.8 in March to 2.4 in April. The TFGI had been as low as 1.2 in October 2001 and again in January of this year.
CIOs Begin to Invest in Infrastructure Again
Spending is on the rise for hardware and networking equipment, areas where CIOs looked first to reduce costs or defer expenses last year. In the April poll, 47.7% of the panelists surveyed indicated they would increase spending on computer hardware compared to March (40.2%)—a jump of 19%. Likewise, the percentage of panelists who will increase investment in data networking equipment rose 16% to 43.8% in April from 37.6% last month.
Internet: Safe to Go Back in the Water
Executives also expressed guarded optimism in Internet initiatives, reporting expected increases in B2B2C investment and online revenue. Panelists will spend an average of 16.3% of the IT budget on developing business over the Internet over the next 12 months compared to 14% in the previous 12 months. CIOs expect 12.4% of total company revenue to come from the Internet in the coming year on average compared to 9.7% in the past 12 months. Internet procurement is also on the rise. Panelists expect to purchase 21.5% of the company's raw materials, supplies and parts over the Internet in the coming 12 months compared to 16.7% over the last year.
Each month, CIO magazine in partnership with Deutsche Banc Securities and Ed Yardeni, surveys a panel of senior executives on current and future IT spending as well as other IT issues. In January, 245 executives responded to the survey. In terms of title, 91% of panel members were CIOs and 6% were CEOs, COOs or presidents of corporations. The remaining 3% held other senior management titles.
Almost all (95%) of the panel members were based in North America. Companies included in CIO's Tech Poll represented a broad range of industries, including manufacturing (15%), technology services (16%), finance (10%), health care (9%) and state or local government (7%). In terms of company size, 13% of the respondents were from companies with 5,000 or more employees.
The complete April CIO Magazine Tech Poll can be found at
cio.com
Previous poll results can be found at
cio.com . <<< |
