Recently completed Aberdeen Group research, “IT Purchasing Shows Signs of Stabilizing,” has provided two key findings The first is that the IT purchasing decline that began in late-2000/early-2001 appears to have bottomed out. Data highlighted in the research paper demonstrates that IT supplier revenues have stopped their precipitous fall and are actually showing growth in some sectors. Additionally, a recent survey of Aberdeen's user advisory panel shows that IT executives plan to increase spending over the next six months by 3.7 percent. This compares to a forecasted decline of 1.4 percent in February of this year.
As a result of this research, Aberdeen expects that IT purchasing will gradually recover over the coming months. However, Aberdeen does not expect a return to extended double-digit hypergrowth. Rather, IT purchasing will more closely mirror the overall health of the economy. And, IT sectors that do exhibit rapid growth will often do so at the expense of others.
Aberdeen's second finding is that the very nature of IT organization and management, productivity and technology infrastructure is being challenged by executive management. Discussed in detail in the Insight, “IT Purchasing: The View from the End of the Tunnel,” Aberdeen predicts a recentralization of the purchase process and greater power resting with the CIO. Additionally, IT productivity will come under increased scrutiny, accelerating the shift toward outsourcing along with internal cost containment. Reduced prices for hardware, software, bandwidth and programming services as well as financing programs, will dramatically reduce upfront costs and spur selective investment in new IT infrastructure. Aberdeen expects Linux on commodity Intel servers, Infiniband and Gigabit Ethernet to be among these infrastructure changes.
Aberdeen is seeing early indications of an IT purchasing recovery. But coming with this recovery are different organizational priorities and technology needs on the part of IT buyers.
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