03 February 2005 | David Arminas
IT procurement budgets are expected to increase by around 2.5 per cent this year, according to an annual report from technology executive group Gartner Executive Programs.
The survey of 1,300 global chief information officers, whose annual combined budget is around $57 billion, noted that the rise is still far below the 10 per cent seen in 2001.
However, it signals a significant improvement on last year's 1.4 per cent rise and represents a return to a more usual growth rate on budgets for IT products and services.
People in charge of IT spending will focus on improving processes, rather than buying faster and cheaper systems, which means savings will come through integration of new and existing programs, according to the survey.
It will also see companies demand more useful data and business intelligence to improve decision-making and innovation.
Mark McDonald, group vice-president for Gartner EXP, said improvements are expected without large up-front investment.
The top priority for IT spending in 2005 is security enhancement tools, according to the survey, followed by business intelligence applications and mobile workforce enablement.
Enterprise resource planning upgrades rank fifth on the list.