eFiles: September 24, 2001

 
 
By eweek  |  Posted 2001-09-24 Print this article Print
 
 
 
 
 
 
 

While tech spending is slumping overall, companies are beginning to appear more willing to spend dollars on e-business.

Spending on e-business to rise ...

While tech spending is slumping overall, companies are beginning to appear more willing to spend dollars on e-business. AMR Research Inc., of Boston, found that U.S. companies plan to increase their overall spending on e-business initiatives by an average of 11 percent in the third quarter. AMR, which announced the findings early this month, surveyed about 60 companies.

Companies plan to boost spending the most on customer management and sales initiatives, on average by 15 percent, AMR found. Supplier management was next, with companies expecting to increase spending there by an average of 9 percent. Companies indicated that their average spending for internal e-business processes would increase by an average of 6 percent and for new product development projects by an average of 5 percent.

... unless economic picture darkens

If the economy doesnt improve, e-business budget reductions are likely, according to recent research from Forrester Research Inc., of Cambridge, Mass.

Forrester surveyed more than 1,000 Global 3500 technology buyers across various industries and found that 48 percent will cut budgets if economic conditions stay grim. Already, Global 3500 technology budgets are flat compared with last year. Twenty-seven percent of respondents have already cut budgets, and 32 percent have reduced their expectations for e-business revenue.

 
 
 
 
 
 
 
 
 
 
 

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