62% Companies Increase IT Budget in 2014. Biggest Increase in ERP and IT Services

Petras Butėnas

CEO

Topic: Managerial

Date: 23 Sep 2014

The information technology industry’s growth is as good as ever – surveys show that IT is the leading industry by growth and IT companies’ revenue forecast stays in an upward trend. Good news for the ERP software resellers – they are the winners in 2013, accounting for the most growth of the IT industry.

Bigger spending for ERP software

According to the market research company Gartner, companies worldwide have spent $300 billion for ERPs and it was 1.8% more than in 2012. The expected companies’ ERP spending in 2014 is $320 billion or 6.8% YoY change. Spending for IT services has been up 1.8% in 2013 or $922 billion and the expected spending for IT services is 4.5% or $963 billion in 2014.

According to Gartner, the biggest increase in 2013 was in ERP and IT services spending. Worldwide companies’ IT spending forecast is shown in a table below:

Year

2011

2012

2013

2014*

2015*

2016*

2017*

Spending (trillion USD)

3.563

3.648

3.663

3.777

3.928

4.077

4.22

YoY %change

2.4%

0.4%

3.1%

4%

3.8%

3.5%

Source: Gartner

*Forecast

 Companies increase IT budget in 2014

TEKsystems did a survey of 900 IT department managers in US and Canada’s companies which has shown that 62% of the companies are increasing their IT budget in 2014, 26% of them will have the same budget and only 12% will decrease their IT budget. Such optimistic numbers signal a growing demand for IT services and growing revenues of IT service providers in the future.

The survey has also asked which IT areas will need the most attention in 2014. The following business objectives IT departments will need the most in 2014 according to the TEKsystems survey:

  1. Implementing new IT applications and infrastructure;
  2. Improving business processes;
  3. Improving existing IT applications and infrastructure.

To sum up, the data suggests steady growth for the ERPs resellers in the future. Growth is not only related with the revenue growth but more working hours needed to develop and manage projects, growth of a demand for developers and project managers. Are you prepared to accelerate growth of your company? Simplanova’s Partners have already proved to improve their Dynamics NAV development processes by acquiring professional help, innovative methods and tools to boost their growth. If you want to boost your Microsoft Dynamics NAV development department’s performance, contact Simplanova and improve your daily development operations by co-operating with specialized industry professionals.