IT spend to go up in mining, petroleum & agribusiness

Updated: Jan 22 2002, 05:30am hrs
Information technology spend is likely to show robust growth in sectors such as petroleum, mining and agribusiness; and decline in manufacturing, utilities and government, according to a survey carried out by leading IT research firm Gartner and SoundView, an investment banking firm.

“Our research indicates that petroleum and mining will be the most attractive sector for IT vendors in 2002, while non-durable goods manufacturing will see the largest percentage drop in IT spending year over year,” said Mr Al Case, Gartner senior vice-president and co-creator of the survey in a summary of the report.

About 1,048 participants were polled, representing more than 20 industries and more than $35 billion in technology spending for their respective corporations. About 60 per cent of the respondents indicated increases in IT spending for 2002, while 40 per cent indicated decreased spending.

Petroleum and agribusiness showed the strongest gains in IT spending, projected to rise about 16 per cent and 10 per cent respectively.

The business services, financial services, media and entertainment, retail and healthcare industries all indicated minimal IT spending increases. The non-durable goods manufacturing and utilities showed steep declines, with a projected decline in spending of approximately 15 per cent and four per cent. Gartner and SoundView had earlier indicated which technology sectors were likely to realise growth in 2002.