More than half of all mid-size businesses will increase their IT budgets in the next year to year-and-a-half, says international computing firm IBM.
This was the result of a global survey, “Inside the Midmarket: A 2011 Perspective”, which was undertaken on IBM's behalf by research company KS&R. The global study includes responses from more than 2 000 companies in 20 countries, including SA.
Companies planning to increase their IT budgets will invest in a wide range of priorities, including analytics, cloud computing, collaboration, mobility and customer relationship solutions.
According to research company IDC, growth of spending in the IT sector this year will outstrip economic growth and reach about $14.4 billion. Local IT spending is expected to grow at 7.5% this year, compared to expected gross domestic product growth of between 3.3% and 3.5%.
Business growth
IBM's study also shows mid-size firms are increasingly moving towards adopting cloud computing technology. Two-thirds of the companies surveyed are either planning or currently deploying cloud-based technologies to improve IT systems management and lower costs.
Gerard Dumont, senior IT architect at IBM sub-Saharan Africa, says the findings show “mid-size firms are tackling a new set of opportunities to advance their role as engines of economic growth”.
“When we spoke to mid-size firms 18 months ago, most were focused on reducing costs and improving efficiencies. Today, the conversation is also about expanding their business, connecting with customers and gaining greater insights,” notes Dumont.
Top of the list
The research found that, while there are many common areas of IT focus for mid-size businesses around the world, some areas are higher priorities in certain countries.
In SA, key priorities included financial management to improve finance operations such as claims automation, risk simulation and compliance. Another key focus area in SA was maintaining the viability of core IT systems.
According to IBM, key spending areas for the companies in the survey include security, customer relationship management and information management. Three-quarters of companies plan to upgrade their core IT systems to improve performance, security and reliability.
However, the companies also cited barriers to IT adoption such as a lack of IT skills and resources.
The survey included 2 112 business and IT decision-makers at midsize businesses with between 100 and 1 000 staff. It was conducted in the last quarter of 2010 across several industries, including banking, retail, consumer products, wholesale, transportation, industrial products, and insurance.
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