U.K. IT Budgets Set to Increase in 2004, According to IDC Decision-Maker Survey

U.K. IT budgets are expected to increase in 2004, according to a recent study from IDC. Higher confidence among IT budget holders in the U.K. and a general improvement in business conditions have led to 42% of respondents believing that their IT budgets will be larger in 2004. Although economic uncertainty still represents the biggest challenge for U.K. businesses, the influence of this factor is waning.

Most increases will center on priority purchases such as product renewals and upgrades, and attitudes remain cautiously optimistic, but IDC has noted the return of key drivers such as technology improvements and innovation, said Elsa Opitz, research analyst with IDCís European IT Markets service.

Interest in solutions such as security, mobility, CRM, and Web services is very apparent in the U.K. and spending on these areas is likely to increase as the economy picks up pace and improves. Almost half of the survey respondents said technology improvements would be a major driver for IT investment in the next 12 months.

Further survey findings include:
23% of U.K. IT decision makers cite economic uncertainty as their main business challenge, down from 30% in the previous quarter.
64% feel positive (17%) or slightly positive (47%) that their companies will allocate the necessary budget increases for IT spending in the next 12 months.
63% of companies are planning to replace PCs and 43% are planning to replace server equipment.

The study, U.K. IT Decision-Makers Survey 1Q04 (IDC #HI01L, April 2004), is the second in a quarterly series analyzing the key issues and concerns of U.K. executives involved in the IT purchasing process. Changes in business confidence and priority purchases from one quarter to the next are monitored and the likelihood of a near-term recovery in IT spending assessed. The studies are published in IDCís European IT Essentials service. To purchase this document, please visit www.idc.com.