Business consulting firm AMR Research has found that businesses in general plan on increasing their spending on Information Technology (IT) this year.
According to AMR, 2002 will be a year of prioritization for IT spending, forcing companies to look at how IT investments impact their bottom line, with incremental purchases on technology that demonstrate an ability to deliver a rapid returns on investment.
AMR said its survey results for the fourth quarter 2001 showed a planned increase in electronic commerce business budgets of 9%, up from 7% in the previous quarter. The majority of overall e-business spending focused in areas that drive revenue, including sales and customer management initiatives, the survey found.
The percentage of companies that plan to increase IT spending continues to increase from 60% in the third quarter to 66% in the fourth quarter. However, the percentage of companies planning to decrease spending more than doubled from 6% in the second quarter to 13% in fourth quarter of 2001, a continued reflection of the current state of the economy and world affairs, the survey said.