CIO speak: IT spending to grow in 2004

by Hinesh Jethwani    Oct 14, 2003

According to a report published by investment firm Credit Suisse First Boston, IT spending is expected to increase steadily.

The report involved a survey of chief information officers (CIO¨s) from Fortune 1000 companies. The survey depicts a favorable capital spending trend on technology infrastructure, in the first quarter of 2004, according to CSFB.

CSFB found that 47 percent of chief information officers project at least a moderate spending increase in 2004, while 36 percent expect to hold capital spending flat.

Only 17 percent of participants believed that their capital budgets will be reduced in 2004, down from a third of participants during 2003, according to the report.

The study comes amid high controversy and ambiguity about the direction of IT spending.

Overall information technology spending in the United States is stabilizing, but not likely to jump significantly in the near future, according to a Merrill Lynch survey of chief information officers released last week.

A similar study published last month by Goldman Sachs, found that American businesses have continued to spend conservatively on technology during 2003, but that a modest recovery was eminent in 2004.

The CSFB study found that security and integration dominated the list of IT priorities for the next 12 months. Packaged applications came in a close third.

Only 1.5 percent of participants suggested that a Microsoft Office upgrade is a priority for the next 12 months, the study said.

The participating CIO¨s, selected Dell, IBM and Cisco Systems as their top three candidates for increased spending in 2004, according to the study.