Information Technology spending is gaining momentum, with investments in software, infrastructure, and other areas of IT growing 4.3% in Q3 2003, according to AMR Research’s quarterly IT spending figures.
IT budgets have shown continued momentum building, with growth rates increasing steadily to 4.3% in Q3 2003 up from 3.4% in Q2 2003. IT budget growth in Q3 2003 also reflects a significant leap from the same quarter in 2002, which saw growth nearly stagnant at 0.2%. Customer Service will be the central focus of 2004, with 38% of respondents claiming that customer-driven issues like loyalty and retention will have the greatest influence on IT investments over the next 12 months. Networking/telecommunications will get the most investment, with 24% of respondents giving the area top priority in the next 12 months. The results show networking and telecommunications are vital to real-time connectivity for customers, suppliers, and employees. Strategic Technology Infrastructure initiatives like security and integration are also a top priority in 2004, with investment plans soaring to 21% in Q3 2003 from 12% in Q1 2003