A new survey released by the Gartner Group Inc. on Wednesday found that 65 percent of respondents expect their IT spending to increase in 2001.
The survey of 510 Fortune 500 and Global 2000 companies found that respondents expect their IT spending to increase by 13.3 percent on the average.
Even though signs point to a slowdown in the US economy generally, spending on IT will increase because IT is increasingly seen as driving competitive advantage and as having the highest return on investment, said Jim Lebinski, vice president and research director of Gartner Measurement.
Though technology spending was once seen as simply an expense, tools such as customer relationship management and enterprise resource planning systems are now seen as generating revenue, he said.
IT budget increases, and in turn, sales, will rise due to natural price increases in products, competitive impulses and purchases of new technology that had not been available when budgets were set, Lebinski said.
Gartner Group, in Stamford, Connecticut, can be reached at +1-203-316-1111, or via the Web at http://www.gartner.com/.