SUMMARY 2
Impact 2
Our View 2
Key messages 2
DETERMINING A REBOUND IN IT SPENDING 3
The importance of H2 2007 as a benchmark 3
IT BUDGET ANALYSIS 4
IT expenditure is set to rise modestly in 2010 4
IT spending is rising for the first time since the global downturn 5
IT spending remains resilient 6
The gap between forecast and actual changes in IT expenditure has widened 7
2010 will be a year of reckoning for IT spending 8
IT spending trends vary wildly by region 8
IT spending variations do not correlate to GDP trends 10
Recessionary concerns linger in the US, UK and Italy 11
All verticals suffered from lower IT spending compared to pre-recessionary levels 12
Hostile market conditions are forcing IT budget cuts 13
Government initiatives and regulations are buoying IT budgets 13
Government IT spending will remain relatively stable 14
IT budget allocation is similar across all sized enterprises 15
Investment by technology type is surprisingly predictable 16
Significant spending variations within IT categories exist 17
BUSINESS PRIORITIES AND OBJECTIVES 18
IT is not yet viewed as an engine for business growth 18
Growing revenue has become less of a business objective for IT investment 19
SUMMARY 20
IT decision makers are not yet spending for growth 20
APPENDIX 21
Further reading 21
Methodology 22
Ask the analyst 22
List of Tables
Table 1: How did your IT budget change in 2009? How will it change in 2010? 5
Table 2: How did your IT budget change last year? How will it change next year? 9
Table 3: How did your IT budget change last year? How will it change next year? 13
Table 4: Types of IT investment in H2 2009 were generally consistent with pre-recession trends 17
List of Figures
Figure 1: One third of CIOs surveyed anticipate increased IT budgets in 2010 4
Figure 2: IT budgets are beginning to increase for the first time since the 2008 financial downturn 6
Figure 3: The perception gap between forecast and actual changes has widened 7
Figure 4: IT expenditure varies by geography, with significant decreases for CIOs in the UK, US and Italy 9
Figure 5: Developed countries are emerging from financial downswings 10
Figure 6: All verticals suffered lower IT spending increases and greater cuts in H2 2009 compared to H2 2007 12
Figure 7: Small enterprises are slightly more likely to spend more on hardware 15
Figure 8: Most of the IT wallet in 2010 will go to hardware, software and services 16
Figure 9: IT strategies are increasingly focused on alignment with general business goals and end-users 18
Figure 10: Raising efficiency remains a top general business objective for IT investment 19