Spending on technologies for e-business will fall to an average of 3% of revenue in 2002 from 3.5% last year, Forrester Research Inc. has concluded from a survey of almost 900 information technology and business decision-makers at Global 3,500 firms. The average 2002 e-business technology budgets of those firms will be $29 million, compared with $41 million in 2001, Forrester says.
The survey also found that business executives expect the fall in e-business spending to be more substantial than do their IT colleagues.
"Our survey also found that Global 3,500 executives estimate their online- generated 2002 revenues at 7.3% of overall corporate revenues, compared with 5.7% in 2001," says Tom Pohlmann, senior analyst at Forrester. "They estimate that in five years online revenue will comprise 20% of total corporate revenues.
"Despite the economic downturn companies still believe that technology will make a huge difference in driving business results."
The Forrester survey found that, when compared with last year, 23% fewer firms are considering purchasing server, network and storage hardware and that 58% fewer firms are considering buying enterprise application software like customer relationship management, enterprise resource management, supply chain and procurement this year. "Most companies will curb the number and types of technology product they will consider buying in 2002," Pohlmann says. "Compared with 2001, companies are much more risk-averse when considering new technologies, opting to make do with what they have before buying more."
Manufacturing firms were higher than firms in other industries in plans for enterprise application integration with 65% of manufacturing firms either considering or piloting installations, Forrester says.
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