IT Execs Scrutinize Budgets, Forrester Says

Jan. 13, 2005
Compiled By Traci Purdum According to the recent Forrester Research Inc. report, "How Companies Govern Their IT Spending: Business Technographics Data Overview," IT executives have become more serious about how their companies prioritize, fund, ...
Compiled ByTraci Purdum According to the recent Forrester Research Inc. report, "How Companies Govern Their IT Spending: Business Technographics Data Overview," IT executives have become more serious about how their companies prioritize, fund, purchase and deploy IT products and services within their organizations. Indeed, only 5% of overall IT spend is still available for new technology investments this year. Additionally, the study found that mid-2003 IT spending budgets are weaker and below planned budget levels. As a result, Forrester revised its growth forecast on IT spending from 1.9% to 1.3%. Other key findings of the report, which queried 704 executives and directors of North American companies with at least $500 million in revenues, include:
  • On average, firms spend 21% of their overall IT budget on new investments, 75% of which is already earmarked for an existing or planned project.
  • 30% of companies must get executive approval on any new investment, regardless of the dollar amount.
  • ROI calculations are required on 90% of all investments.

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