IT Spending Recovers

The cyclical upswing in net new IT spending is continuing, according to the 2004 Wendover-Global Insight IT Spending Index. The Q2 2004 Index is now predicted to show a 60% increase over the Q2 2003 level, which was the lowest level of IT spending recorded by the Index.

The Index measures the intentions of IT decision-makers to invest in new capital projects, typically purchases that will close in the next six to nine months, and is based on a score of 100 points for Q4 1999.

In terms of software sectors, both ERP and CRM showed a slight decline in May. The ERP index value fell by 17% and CRM declined by 7%. However, both sectors are expected to show growth in the coming quarters. Similarly, Maintenance and Facilities Software showed a slight decline but this is seen as an aberration. Operations Software continues its steady rebound from last year's low, rising 70% since Q2 2003, while e-commerce services show a substantial 51% rise in the May figures, suggesting new spending is anticipated on a wide array of software and services.

Further tables and more detailed results are available at www.globalinsight.com/itindex

The IT Spending Index is published monthly through a partnership of the two companies, Global Insight, Inc. and Wendover Corporation, and is based on 133,000 surveys annually with IT decision-makers at 80,000 of the largest companies throughout the US and the UK, including every Fortune 500 business.

Web sites are at www.itforecast.com (Wendover) and www.globalinsight.com .