Medium sized UK businesses plan large business continuity and security investments in 2005

Investment in technology – and prioritising its spend - looks set to becoming high on the agenda for middle-ranking firms this year, according to a KPMG survey of 100 medium-sized UK businesses. 48 percent of the companies interviewed are intending to significantly increase their IT spend over 2004 – reversing the trend of tightly controlled IT costs of more recent years. The overall survey results suggest that middle-ranking firms are now prepared to invest in and leverage their expenditure on IT, with planned spending up by an average of 31 percent for 2005 over 2004.

The largest proportion of IT investment – 37 percent - has been earmarked for business improvement and automation, with investment in business continuity and security aspects next down the list of priorities at 24 percent of the total IT budget according to the survey respondents.

Says KPMG Advisory director, Richard Boreham: “With so many IT budgets on the up from last year, it is important that companies get their spending priorities right. Whilst the main focus of this increased IT investment is on business process improvements and automation, key issues such as IT security and business continuity are also receiving increased attention. According to our results, the biggest barrier to effective allocation of this investment in IT is deciding between conflicting priorities (58 percent). Other major obstacles include past perceptions of IT project delivery (37 percent) and developing a robust business case (37 percent).”

www. kpmg.co.uk

•Date: 13th May 2005 • Region: UK•Type: Article •Topic: BC statistics
Rate this article or make a comment - click here