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IT spending projected to rise in 2014

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Information technology spending is projected to rise in 2014 as more companies adapt toward wider use of mobile technology, according to a new survey published by Data Inc.

The Montvale-based information technology provider reports 70 percent of participants plan to increase spending in 2014, while 5 percent expect declines. The remaining 25 percent of businesses expect their IT budgets to remain about the same.

The projections continue a trend of higher IT spending in recent years: 81 percent said they increased IT spending in 2013, followed by 68 percent of participants who ramped up spending in 2012, according to Data Inc.

"A lot of change pertains to the mobile side, both tablets and smart phones," said Ashis Bhisey, vice president of technology at Data Inc. "Look back for or four five years ago and the only thing most back-end operations were connected were to PCs."

Bhisey said many companies are not replacing aging computers with new desktops and laptops, instead opting to use tablets as channels of corporate information.

The better economy also plays role. Bhisey said after some pullback in IT spending after the recession of the late 2000s, more companies are stepping up their modernization now.

The two top areas of IT investments in 2013 were application development, which 66 percent of respondents listed as a priority, followed by application testing, ranked as important by 61 percent. Other priorities include service oriented architecture and mobile apps, both of which rank as priorities for 55 percent of participants.

There were also more high-end projects in 2013. About 21 percent claimed they either won or were awarded a project costing $100 million or more, compared with 13 percent in 2012. About 30 percent of projects cost less than $500,000 last year, respondents said.

To compile its report, Data Inc. surveyed 225 IT professionals, including chief information officers, senior IT directors, project directors and programmers from September to November.

The audience is global: 82 percent of participants are based in North America. The largest industry was financial services, representing 26 percent of participants.

Other findings from the survey:

  • Corporate satisfaction with IT vendors is down. About 25 percent of survey respondents in 2013 stated that they were "very satisfied" with their vendors compared with 56 percent the prior year.
  • Cost was cited as the top challenge in implementing upgrades for 53 percent of participants. Support and maintenance of a provided application are also concerns.
  • Employment among respondents was up 8 percent to 89 percent in the latest survey, which Data Inc. says supports continued growth of IT budgets.

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