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:///

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