Survey Reveals IT Spending Going Up Despite Softening Economy

SOUTHBOROUGH, MA – JANUARY 29, 2001 – Network IT professionals have more money to spend on their corporate network budgets this year, according to the 2001 Network World/STAT Resources IT spending survey, which appears in the January 29th issue of Network World, the nation’s leading network magazine.

 

A growing reliance on e-business is pushing nearly half of the bigger companies surveyed to invest more heavily in their networks this year. The results indicate that 2001 will be an active year in terms of network spending, especially among larger companies. A detailed analysis found that nearly half of companies with network budgets — $500,000 and up — predict they’ll spend at least 11% more than they spent in 2000, and almost one-quarter of them expect to spend an additional 25%. And the budget increases are not just confined to larger corporations: 40% of firms with mid-size budgets are predicting at least an 11% increase.

"This is good news for companies like Cisco, EMC, IBM, and Nortel Networks," said Neal Weinberg, Network World Features Editor. "Even with the downturn in the dot-com industry, companies still need to build and maintain their corporate networks and web sites."

The survey is based on a random sample of 400 Network World qualified subscribers, who are responsible for choosing or approving network expenditures. The survey focused on projected spending for 2001 in the following areas: capital equipment, employee labor costs, and outsourcing/services. Some other key findings in the survey are:

47% of total network budgets will be spent on capital equipment

34% of total spending will be allocated to labor costs to run added hardware and software

19% of total spending will be allocated for outsourcing/services

71% of larger companies in the survey are embarking on major network projects

43% of total respondents surveyed plan to expand their regular IT staff

Especially notable is the shifting of funds to outsourcing. Large companies report that their allocation to outsourcing & services will increase an average of 38% in 2001 — compared to an increase of 9% for both small and mid-size companies. It is also interesting to note that labor costs are predicted to increase 18% for large companies and that 43% of the respondents surveyed say they plan to expand their regular staff.

For more details, including previous Network World Spending Surveys, go to:http:///www.nwfusion.com/research/2000/0124spending.html

About Network World

Network World, Inc., the Leader in Network Knowledge, empowers Network Leaders and enables e-business through education, information and community. Network World is the leading provider of news, analysis, reviews, events and education on information technology. Network World publishes the leading newsweekly, Network World, hosts the most active online community, Network World Fusion (http://www.nwfusion), and produces educational seminars and events worldwide.

About International Data Group-

Network World, Inc. is a division of IDG, the world's leading IT media, research and exposition company. IDG publishes more than 300 magazines and newspapers and 4,000 book titles and offers online users the largest network of technology-specific sites around the world through IDG.net (http://www.idg.net), which comprises more than 270 targeted Web sites in 70 countries. IDG is also a leading producer of 168 computer-related expositions worldwide, and provides IT market analysis through 50 offices in 43 countries worldwide. Company information is available at http://www.idg.com.

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