UK IT spending bucks downward trend; defies predictions

A new report, the Benchmark of IT spending 2008, by the National Computing Centre underlined the healthy growth in IT spending expected to happen in 2008, which defies the current trend of spending cuts and growing faster than inflation.

120 Senior IT decision makers were polled and nearly three out of five respondents expect their IT spendings to increase in 2008, painting a rather rosy picture in a gloomy economic environment.

Stefan Foster, NCC's managing director argued, “We hear talk of a recession, but the Benchmark results indicate that IT purchasers are remaining confident about future economic conditions; they are making sure that their businesses have the right technology to deliver growth of the coming years”.

The report mentioned Windows Vista, Mobile computing, virtualisation, automation technologies, entreprise resource planning, customer relationship management and other back-end applications as being the main recipients of IT expenditures.

However, the survey also showed that total IT spending in the UK is likely to fall significantly, especially in the Finance sector.

120 firms and organisations with a total turnover of £32 billion and a combined IT spend of £750m participated in the research.