Companies Spending 27% of IT Budget on New Initiatives

January, 2008

(IRVINE, Calif.) The average company allocated 27% of its IT budget to spending on new initiatives last year, indicating that companies were investing in emerging technologies, infrastructure improvements, and new business applications at a healthy level, according to Computer Economics.

As IT budgets come under constraint in 2008, companies will need to glean efficiencies from the ongoing “keep-the-lights-on” budgets to maintain spending on new initiatives or risk falling behind competitively.

“The ultimate goal of tracking this key ratio is to improve the spending mix and free up more money for innovation and infrastructure reinvestment,” said John Longwell, director of research for Computer Economics.

The full report, IT Spending for New Initiatives: Key Measure of Efficiency, Competitiveness, assesses the importance of tracking new versus ongoing spending as a means of improving organizations’ competitiveness and maintaining a healthy level of investment in IT infrastructure.

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