According to Forresters outlook on IT spending for the next year, networking/storage/server equipment - mainly infrastructure-related spending - is expected to be high.
The IT teams the management and the marketing all have to increasingly collaborate. In terms of amount spent on IT versus the performance, Forrester found that most of the excellent performers, who invested about 3.3 per cent of their revenues on IT (but were not the highest spenders) had significant offshoring activity, Mr Colony said. While, Forrester estimates that offshoring expenditure will be in the low spend category, the companies have already initiated offshoring to continue to ramp up their activities on this front according to the research findings. In North America, particularily the retail, insurance and consumer services sectors are expected to be high spenders. As per the company estimates on future increase/decrease in IT spending in 2004, the computer and peripheral equipment segment is expected to increase spend by nine per cent (-4 per cent in 2003), the communication equipment increase by two per cent (-10 per cent), software by six per cent (five per cent), consulting by -2 per cent (-3 per cent), IT outsourcing by seven per cent (four per cent) and overall by four per cent (-1 per cent).
Addressing the inaugural session at the Forrester forum, Wipro Corporation chairman and managing director Mr Azim Premji said that many companies with apparently lifeless IT investments could actually be missing one final piece of technology, and if they worked with a customer in a systematic manner to find the missing link, it could lead to unleashing enormous benefits for both. Pointing out that technological and managerial innovation should go hand in hand, Mr Premji said that many companies had discovered that when technology innovations outstrip managerial innovations, the benefits fall through the crack in between.