ICT budget and staffing trends in the US Enterprise ICT investment plans to 2013

Monday 11 February 2013, Amsterdam

About 14% of the CIOs and other ICT decision makers in the US expect that their ICT budgets will rise significantly in 2013, according to the respondents from Kable’s H2 2012 survey. Enterprise ICT spending is anticipated to follow an upward trend after recovering from the macroeconomic debt crisis; with 41% of US enterprises likely to increase their IT budget slightly in 2013 (see graph below).

The optimism in the US market is stemming from the fact that there are a rising proportion of respondents who intend to increase their ICT budgets significantly (by more than 6%). It is also important to note that the proportion of respondents who forecast a decrease in their ICT budget is likely to remain low in 2013, as compared to 2012. A considerable number of respondents have also expressed their desire to increase their ICT budget slightly in 2013, thus indicating a positive trend. Moreover, it seems that the forthcoming year will see a significant drop in the proportion of US enterprises whose ICT budgets will remain flat (0%).

Though it is evident from the survey that the US economy is reviving from the macroeconomic crisis, the recovery rate is on the weaker side due to the imminent “fiscal cliff” looming over growth hopes. As a result, the US enterprise ICT market for business and purchases of technology goods and services is most likely to see slow, yet positive growth in 2012-13. An overall moderate growth in ICT budgets is expected but much depends on the economic situation. Despite a drive to cut expenses across government, many public sector organisations are willing to continue to invest in ICT. US businesses are likely to remain cautious, but the projects which were delayed due to the economic downturn are expected to be commissioned in the next couple of years