CIO: "TECH POLL REPORT: Outlook on Technology Spending Improves Slightly"
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Rearranged some.
>>>Posted: July 2, 2001
TECH POLL REPORT: Outlook on Technology Spending Improves Slightly
BY LORRAINE COSGROVE WARE
After months of predicting a decline in IT spending, CIO Magazine's Tech Poll showed modest improvement in June, with current IT budget increases holding relatively steady and future budget increases crawling back up to March and April levels.
CIO's current and future Technology Growth Indices
...which measure the overall health of IT budgets and the significance of new economy technologies on IT spending,
...increased for the first time in six months,
... signaling that CIOs are more optimistic about IT investment in the coming 12 months than they had been.
Estimated IT budget increases for the next 12 months rose from 3.8 % in May to 6.3% in June, according to a survey of 276 IT executives.
Close to half of those surveyed (49%) reported that their IT spending remained unchanged from calendar Q1 to Q2 of this year.
Approximately 42% of panelists in the CIO Tech Poll said the economic slowdown had no impact on their companies' IT spending, while 42% reported that the slowdown had a modest negative impact.
Waiting to Exhale
While the results of CIO's latest Tech Poll hint that IT spending has stabilized, the technology sector may NOT be in the clear quite yet.
The Current Technology Growth Index (TGIC), which compares current IT budgets and spending to the previous 12 months, increased from .6 to .7 in June, an improvement of 17%.
CIO's 12-month Future Technology Growth Index (TGIF), a measure of IT budget activity in the coming 12 months, rose 66% to 1.0 in June.
While showing some month over month improvement, both the current and future indices are down significantly from November 2000 highs of 3.3 and 4.1, respectively.
Anticipated investment in B2B2C Internet systems, as a percent of the overall IT budget over the next 12 months, rose slightly (13%) to 16.2 % in June from its low of 14.3% in May.
Expected revenue from the Internet as a percent of total revenue remained flat at 10% month over month. Both of these indicators, while encouraging from last month's lows, are down significantly from last November.
Each month, CIO, in partnership with Ed Yardeni, Chief Investment Strategist of Deutsche Banc Alex. Brown, surveys a panel of senior executives on current and future IT spending as well as other IT issues. Roughly 92% of panel members were CIOs and the remaining 8% were CEOs, CFOs, COOs, or held other senior management titles. Almost all (96%) of the panel members were based in North America. Companies included in CIO's Tech Poll represented a broad range of industries including technology services, finance, manufacturing, health care and government. Close to 40% of the respondents were from companies with 1,000 or more employees. <<< |
