SIGIA-L Mail Archives: Re: SIGIA-L: State of the Market
Re: SIGIA-L: State of the Market
From: Mary Lukanuski (maryl_at_addis.com)
Date: Tue Aug 07 2001 - 19:04:56 EDT
Hmm, interesting, but a significant contributor/owner of my past
projects was the client's marketing department.
>Latest survey results from Gartner, regarding the number of dollars
>available for much of the work you might be engaged in.
>AND THE SURVEY SAYS ...
>Posted at August 3, 2001 01:01 PM PST Pacific
>MOST COMPANIES still devote a small fraction of their
>information technology budget to e-business, and this
>isn't likely to change soon.
>That's the word from the experts here at Gartner, and
>we're not just pontificating. We base these
>assumptions on a survey that included approximately
>In this year's survey, we deliberately asked
>respondents about their e-business spending habits.
>Specifically, we asked them what percentage of their
>IT budget they devoted to IT spending in 2000 and in
>2001. The results were somewhat surprising.
>Overall, the organizations in the survey said
>e-business accounted for 11 percent of their IT
>budgets in 2000, and will account for 12.2 percent of
>IT budgets this year. Respondents plan to bump their
>e-business spending up to 13.2 percent in 2002.
>It is worth noting that survey respondents were
>relatively large firms; the average size company
>generates $2.3 billion in annual revenue. And a
>variety of industries is represented in the survey --
>everything from government to financial services to petroleum.
>Some big spenders were in the crowd. The IT sector,
>which includes hardware and software makers, will
>spend approximately 38 percent of its IT budget on
>e-business this year. Manufacturing firms on the other
>hand spent only 7 percent of their IT budgets on
>e-business in 2000 and will increase this number to
>only 9.8 percent in 2001.
>For purposes of the survey, we defined e-business
>spending as the costs associated with the Internet,
>intranets, extranets, customer relationship management
>(including sell-side e-commerce), and supply-chain
>management (including e-procurement and EDI
>[electronic data interchange]).
>We told respondents to include the costs associated
>with acquiring, supporting, and maintaining these
>systems, and include the IS organization's costs as
>well as the business unit's costs.
>This year, of course, has been a difficult one for
>companies in the business of selling hardware and
>software, and the Gartner annual staffing and spending
>survey showed that companies are indeed buying less
>computing gear. But we found that overall companies
>are spending on IT at about the same rate (slightly
>more, actually) this year than they did last year, and
>they are planning to increase budgets (again, just
>slightly) next year.
>This may seem counterintuitive, but consider that in
>most companies, approximately 75 percent of the IT
>budget is nondiscretionary. That substantial chunk of
>money represents what the company must spend just to
>maintain the infrastructure and systems it already has.
>So, if you're lucky, you have about 25 percent
>available to use at your discretion.
>That is not much when you balance the demands of
>mobile, security, e-business, and a host of other
>really big and important things that are on the IT horizon.
>Barb Gomolski is a research director at Gartner, a
>Stamford, Conn.-based research firm. Send her e-mail
>Paula Thornton, Interaction Design Strategist
>Thus the task is not so much to see what no one yet has seen,
>but to think what nobody yet has thought
>about that which everybody sees ~ Schopenhauer
Manager, Brand Strategy
Addis | 2515 Ninth Street Berkeley CA 94710
maryl_at_addis.com | fax 510.704.7501
See our latest work at http://www.addis.com.
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