CIO.com confirmed that half of CIOs to increase IT budgets in 2011
More than 50% of the top IT companies have plans to increase IT spend over the next 12 months with only 15% saying that their spend is likely to fall. The survey was on 250 IT leaders who were questioned about their future spending plans and business outlook. New business applications spend is set to increase by 50% and web by 40%.
As we continue through the recession, IT managers have been turning more and more towards alternative models. Unsurprisingly it is the cloud, on-demand services and software as a service that is getting the attention as they can half hardware costs and scale to any size with minimum fuss for the software licences. This applies to CRM applications like salesforce.com to inventory software like AssetVox for use in warehouses.
Summary: Larger projects have just not been going ahead and upgrades in particular have gone onto the back-burner. It is widely accepted that on-demand software cloud offerings will continue to help reduce personnel costs and offer special benefits to those firms that do not have internal IT resources.