Spending plans for 2005
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The majority of businesses expect their IT spending to increase next year, but some surprising sectors are forecasting a decrease.
The majority of UK organisations expect to increase their IT spending in 2005 - although a recent survey points to several sectors where there will be little if any growth in budgets.
Of the 168 executives responding to the National Computing Centre's (NCC) recently conducted Benchmark of IT Spending, 53% said they anticipated growing spend in 2005, with an expected median increase of 1.9%. Certain sectors are talking of a much faster pace. In both the health and education sector the rise is likely to be around 3%; executives at business services companies predict 6% growth; and technology suppliers are looking to spend 10% more on IT.
In contrast, respondents from central government forecast of a 7% fall. And those form the finance sector expect a 1% fall, although its median spend per end user is large, at £6,101, and far outstrips the cross-sector median of £2,904.
On average, organisations reported that 68% of their IT spending was devoted to operational costs, including staff, with 28% going on capital/development spending and the remaining 4% under the control of end users.
Upgrades to Windows XP dominate spending predictions. NCC expects that in two years Windows XP will represent over 60% of desktop systems, in contrast to the present rate of 23%.
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