IT Budgets to Stay Flat This Year

THE UPCOMING YEAR will be far from stellar for IT vendors, according to an AMR Research survey on technology initiatives. One hundred respondents from manufacturing and service industry companies with average annual revenue of $1.5 billion indicated that their information technology budgets will stay flat for 2003.

Preferred Vendors
Oracle 31% Microsoft 33%
SAP 27% IBM 33%
PeopleSoft 10% HP 18%
QAD 3% Sun 10%
JD Edwards 2% Dell 8%
Siebel 2% Oracle 3%
Source: AMR Research, Technology Initiative Survey 2002
Note: Figures for 3Q 2002

Likely to be emphasized in the coming year is enterprise performance management (40% of respondents). Other winners in 2003 will be applications related to customer fulfillment (42%) and supply chain management (41%). Of least interest to survey participants was human capital management (12%). When asked to rank the importance of ERP vendors, respondents showed a clear preference for larger firms (see table), a trend that holds true also for spending on IT consulting.

There was no consensus on what will show that the U.S. economy has “recovered.” Better stock market performance garnered only 35% of the vote, higher consumer spending only 26%, and a more stable domestic and world political environment 4%.

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