IT Operations Spend to Increase by 2% in 2010

By Ericka Chickowski  |  Print this article Print


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The IT channel will likely see moderate gains in its customers' IT spending in 2010 as IT budgets inch up in a year of recovery, according to a new survey.

Channel partners selling the meat-and-potato solutions necessary to keep IT operations  up and running will find that they have a little more budget wiggle room in 2010, according to new findings released by Computer Economics last week.

The analyst firm questioned 139 North American IT organizations about their spending outlooks and attitudes for the coming year. The consensus was that the channel is likely to see moderate gains as their customers accelerate into recovery mode.

"Based on our 20 years of tracking IT budgets, all signs point to a recovery year," Frank Scavo, president of Computer Economics, said in a statement. "IT executives are prepared to make mid-year adjustments, up or down, based on the strength of the recovery, but right now it appears we see a year of stabilization in IT spending and staffing."

The figures show that IT operations will likely bump up by about 2 percent in 2010, very comparable to the 2.5 percent gain in 2005 after the last recession.  Just over half of organizations reported that they plan on increasing their operational budget next year, while around one third say spending will remain flat.

On the whole, IT buyers are far more optimistic about next year's prospects than they were about 2009 at the same time last year. During last year's survey, Computer Economics found that 35 percent of buyers expected to reduce budgets and only 11 percent planned on any increases in operational spend.

On the staffing front, 39 percent of organizations expect to add new positions next year and just 7 percent have any plans to continue to make staff cuts in 2010. On the whole, the report predicts staffing levels to remain flat for the median of respondents.

Over the past three months, 52 percent of survey respondents have not changed their IT operations spending, 19 percent have increased budgets and an additional 29 percent have cut operations spending.



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