Ebusiness spending down on 2001

04/05/2002

Spending on ebusiness technologies is forecast to drop from 3.5 percent in 2001, to 3.0 percent in 2002, according to new research from Forrester.

Forrester indicates that average ebusiness technology budgets for 2002 are likely to total USD29 billion, compared to USD41 billion in 2001.

According to the report, 23 percent fewer firms will consider purchasing technology components during 2002.

Around 61 percent of firms are considering purchase of hardware infrastructure, or network bandwidth this year. However, only 26 percent will consider purchasing enterprise applications, a decline of 32 percent on last year.

The report also indicates that compared with last year, technology buyers are more likely to give business units influence over technology strategy and direction.

Despite the fall in spending, most company executives expect online-generated revenues to grow by 1.6 percent during 2002.

Executives also estimate that online-generated revenues will account for 20 percent of total corporate revenues by 2007.

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Source of Article: NUA Internet Surveys

Date of Article: April 3, 2002