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

Publisher Name :
Date: 26-Jan-2013
No. of pages: 38
Inquire Before Buying

This report presents the findings from a survey of 156 US enterprises regarding their Information and Communication Technology (ICT) budgets and staff allocation. The survey investigates how US enterprises currently allocate their ICT budgets across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting.

Introduction and Landscape

Why was the report written?

In order to provide a depth of insight into ICT vendors’ and service providers’ potential customers

What is the current market landscape and what is changing?

The US enterprise IT market for business and purchases of technology goods and services is seeing slow yet positive growth and this will continue in 2012-13

What are the key drivers behind recent market changes?

Spending on IT in the second half of 2012 was more consistent due to a gradual improvement in the US economy from the macroeconomic crisis.

What makes this report unique and essential to read?

Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Budgets. Very few IT analyst houses will have interviewed 150+ ICT decision makers in the US market in H2 2012.

Key Features and Benefits

  • Understand how ICT budgets are set to change in 2013 in terms of their overall size.
  • Appreciate how IT budgets are allocated across the core elements of IT spend, including hardware, software, services, communications and consulting.
  • Learn how IT dollars are being spent in areas such as the data centre, applications, IT management and the network.
  • Establish how IT staff are typically allocated within US organizations.
  • Gain insight into with whom US enterprises plan to spend their ICT dollars.

Key Market Issues

  • Enterprise IT spending is anticipated to follow an upward trend after recovering from the macroeconomic debt crisis.
  • US businesses are expected to remain cautious in 2013, but there is clearly pent-up demand for ICT investment on projects delayed as a result of the economic situation.
  • In 2013, US enterprises are most likely to reduce their hardware expenditure and increase their spending on software and services.
  • The gradual increase in popularity of hosted data centres and cloud infrastructures as a measure of cost reduction, means that there is huge scope for the providers of hosted data centres, end-user computing and network infrastructure.
  • Kable’s recent survey shows that the largest proportion of IT staff members has been resourced on applications, as US enterprises place a firm emphasis on ensuring that their business critical applications are operating well.

Key Highlights

  • SMBs are spending far more on hardware in comparison to large businesses, primarily driven by investments in PCs, peripherals, notebooks, and media tablets.
  • The proportion of the IT budget allocated to internal development and maintenance during 2012 is set to remain at 24% in 2013.
  • The recent survey reveals that despite the global economic slowdown putting pressure on IT spending, US firms have allocated 13.6% of their software budget to security tools in 2012.
  •  Enterprises are focusing on the likes of mobile applications and open source software, which is contributing to a greater need for application development and integration and related support and maintenance services
  • In order to reduce their telecommunications expenditure, US enterprises are shifting their focus to converged voice and data networks (allocating about 20% of their total telecom budgets in this area).

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

Table Of Contents

1 Trends in ICT budgets
1.1 Introduction
1.2 Survey demographics
1.3 IT budget changes
1.4 IT budget allocation by core technology area
1.5 IT budget allocation by function
1.6 IT spending by entity
1.7 IT staff distribution

2 Detailed IT budget allocations
2.1 Introduction
2.2 Hardware budget breakdown
2.3 Software budget breakdowns
2.4 Third party IT Services expenditure
2.5 Telecommunications budget

3 Summary
3.1 US enterprises are raising IT spending, albeit at a tentative and modest pace

4 Appendix
4.1 Definitions
4.2 Further reading
4.3 Contact the authors

List of Tables

Table 1: US enterprise ICT survey industry breakdown 2
Table 2: US enterprise ICT survey breakdown by size band (number of employees) 3
Table 3: Recent and expected ICT budget changes among US enterprises 4
Table 4: US enterprises' (external) ICT budget allocation in 2012 6
Table 5: US enterprises' (external) ICT budget allocation in 2013 8
Table 6: US enterprises' ICT budget allocation by function, 2012 and 2013 10
Table 7: US enterprises' IT budget allocation by entity in 2012 12
Table 8: US enterprises' IT budget allocation by entity in 2013 14
Table 9: Average allocation of full-time IT staff members in US enterprises 16
Table 10: US enterprises' average hardware budget allocation 19
Table 11: Average allocation of software budgets in the US enterprise market 21
Table 12: US enterprises' average software budget allocation by technology 22
Table 13: US enterprises' average IT services budget allocation 24
Table 14: US enterprises' average IT consulting services budget allocation 26
Table 15: US enterprises' average telecommunications budget allocation 28

List of Figures

Figure 1: US enterprise ICT survey industry breakdown 1
Figure 2: US enterprise ICT survey breakdown by size band (number of employees) 2
Figure 3: Recent and expected ICT budget changes among US enterprises 4
Figure 4: US enterprises' (external) ICT budget allocation in 2012 6
Figure 5: US enterprises' (external) ICT budget allocation in 2013 8
Figure 6: US enterprises' ICT budget allocation by function, 2012 and 2013 10
Figure 7: US enterprises' IT budget allocation by entity in 2012 12
Figure 8: US enterprises' IT budget allocation by entity in 2013 14
Figure 9: Average allocation of full-time IT staff members in US enterprises 16
Figure 10: US enterprises' average hardware budget allocation 18
Figure 11: Average allocation of software budgets in the US enterprise market 20
Figure 12: US enterprises' average software budget allocation by technology 22
Figure 13: US enterprises' average IT services budget allocation 24
Figure 14: US enterprises' average IT consulting services budget allocation 26
Figure 15: US enterprises' average telecommunications budget allocation 28

  • Overview of the Global Retail Market
    The global retail industry continued to grow despite the difficult economic conditions in the world. In the fiscal year of 2011, sales-weighted, currency-adjusted revenue rose by 5.1% to $4.271 trillion for the world’s top 250 retailers. According to GRDI (Global Retail Development Index), in 2013 Brazil occupied the top spot in retail development. Chile and [...]
  • Bright Future Predicted for the Tourism Industry in Singapore
    Travel and tourism industry in Singapore has been growing at a steady rate and is considered to be a major contributor to the economic growth of the country. In 2012, Singapore’s IVA (International Visitors Arrivals) reached a record high of 14.5 million, with a growth rate of 10.1% year-on-year. In recent years, inbound travel to [...]
  • Potential of Staffing Market in United States
    The staffing industry places individuals into contract, temporary and permanent positions in firms around the world. Major staffing markets include France, Spain, Italy and Japan as well as many emerging markets. Temporary staffing around the world has been growing, but in US temporary market has been flat since 2006. The majority of staffing revenue majorly [...]
  • Growth in the Indian Watch Industry
    Earlier, in India watches were seen as a luxury item. However, watches are now witnessing a fundamental change in perception, and are now gaining respect as an essential utility item. With the liberalization of the Indian market, coupled with the rising purchasing power of the young and consumerist Indians, watch industry in India seems to [...]
  • Global Retail Ready Packaging Market to Witness Steady Growth
    The market for retail ready packaging has witnessed impressive growth in recent years with boom in the retail industry. Retail ready packaging, also known as shelf-ready packaging is designed for the retail outlet, ready to be placed on shelf without any need for unpacking or repacking. In 2011, the global market for retail packaging was [...]
  • Wireless Network Security Market by Solutions (Firewall, IPS/IDS, Encryption, I&AM, UTM), Services (Security Operations, Consulting, Managed Security Services) – Worldwide Market Forecasts and Analysis (2014-2019)
    Published: 17-Apr-2014        Price: US $4650 Onwards        Pages: 184
    Today, enterprises are relying more and more on wireless networks. There is no doubt that the wireless networking infrastructure has helped organizations to cut maintenance costs and increase the operating income. Although it looks good from the point of view of profitability, it also makes these organizations an easy target of cyber criminals. Wireless networks no doubt have their perks, but they are also quite vulnerable to cyber attacks. In the current scenario, wireless network security s......
  • Cloud Database and DBaaS Market by Databases (SQL, Nosql), Software (Database Application Builder, Data Scaling and Replication, Back-Up and Recovery, Database Encryption), Deployment Models (Iaas, Paas, Dbaas) and Service Models (Public Cloud, Private Cloud, Virtual Private Cloud, Hybrid Cloud) & Organization Size (Small And Medium, Large) – Global Advancements, Market Forecasts and Analysis (2014-2019)
    Published: 16-Apr-2014        Price: US $4650 Onwards        Pages: 144
    Emergence of innovative database storage offerings such as NoSQL, SQL, public cloud, private cloud, hybrid cloud, and virtual private cloud are pushing the growth of cloud database and Database as a Service (DBaaS) market. Small and medium business are rapidly adopting cloud-based database management services to reduce cost and IT complexities compared to large enterprises, thereby pushing the market growth. However, large enterprises also have huge potential for an aggressive adoption in the fu......
  • High Speed Camera Market by Usage, Component (Image Sensors, Lens, Memory Systems, Image Processors and others), Accessory, Application (Automotive, Military, Defense & Aerospace, Research, Design & testing and others) & Geography – Global Trends & Forecasts to 2014 – 2020
    Published: 16-Apr-2014        Price: US $4650 Onwards        Pages: 310
    High speeds cameras are devices used for the slow capture motion of the high speed events and are used in different applications. Strategic focus areas for the key players would be technology innovations and new product developments rather than existing product development; as striving for product differentiation would boost a player ahead in the race, in the current scenario. Focus on industry relations with OEM giants, pure technology solution providers, and image sensor providers are key t......
  • United Arab Emirates Information Technology Report Q2 2014
    Published: 16-Apr-2014        Price: US $1295 Onwards        Pages: 79
    BMI View: We downgraded our forecast for the UAE IT market over the next five years to 2018 to reflect the increasing downward pressure on PC sales, especially in the consumer segment where desktops and notebooks are being cannibalised by more mobile form factors such as smartphones and tablets. We expect investments in high capacity servers for data centres to be a key growth driver in the hardware division of the IT market. This will, in turn, boost value growth in the software and services se......
  • Nigeria Telecommunications Report Q2 2014
    Published: 16-Apr-2014        Price: US $1295 Onwards        Pages: 113
    BMI View: In February 2014, the NCC fined three of the country's four MNOs the sum of NGN647.5mn (US$3.89mn) for missing their QoS targets for the month of January. This development supports BMI's view that increased regulatory pressure over poor QoS would drive capex spending and efficiency improvement strategies among operators in 2014 and beyond. Some operators sealed network and IT outsourcing deals with leading vendors in late 2013 and early 2014. Meanwhile, there are reports of impending t......
  • United States Consumer Electronics Report Q2 2014
    Published: 16-Apr-2014        Price: US $1295 Onwards        Pages: 78
    BMI View: The US consumer electronics market is mature, with high penetration rates in a number of device categories, but opportunities remain. Growth areas include large-size HD TV sets, smartphones, Microsoft Windows 8 tablets and convertibles/hybrids, Ultrabooks, and smart TV sets. Questions still remain about the sustainability of consumption in the absence of strong wage growth. Headline Expenditure Projections Computer Hardware Sales: US$125.4bn in 2013 to US$130.4bn in 2014, +4.0% in US d......
  • Qatar Consumer Electronics Report Q2 2014
    Published: 16-Apr-2014        Price: US $1295 Onwards        Pages: 70
    BMI View: Despite its small population, BMI has a positive outlook for Qatar's consumer electronics market, owing to high GDP per capita and strong demand for new technologies. We forecast a compound annual growth rate (CAGR) of 9.4% for the computer hardware market between 2014 and 2018, supported by average real private consumption growth of 8.6%. Our bullish outlook is also the result of government investment in diversifying the economy away from hydrocarbons and building up its ICT sector, m......
  • Vietnam Telecommunications Report Q2 2014
    Published: 16-Apr-2014        Price: US $1295 Onwards        Pages: 108
    BMI View: Since January 2013, we have been using the Vietnam Telecommunications Authority data on the mobile sector. Previously, we made estimates based on figures published by Vietnam's General Statistics Office (GSO) and the Ministry of Information and Communications (MIC), which tended to conflict with each other. The figures available do show a general upward trend in Vietnam's mobile market - although the pace of growth has slowed in recent years. Delays to the launch of 4G mean that, for t......
  • Russia Information Technology Report Q2 2014
    Published: 16-Apr-2014        Price: US $1295 Onwards        Pages: 87
    BMI View: We downgraded the growth forecast for the Russian IT market in the Q214 update in response to a weaker macroeconomic outlook and uncertainty arising from Russia's involvement in the security situation in Ukraine. Beyond this short-term drag on growth the Russian IT market has strong medium-term potential, with a low penetration in devices and enterprise solutions - and an increasingly supportive regulatory and policy framework following WTO membership and state initiatives to promote I......
  • SERVICES
    Value for Money
    We believe in "optimum utilization of available budget and resources". While servicing our clients' (your) market research requirements, we keep the same approach in focus to help you get the best value for your $$s.
    Ever Growing Inventory
    Ranging from the smallest feasible / required data (datasheets, data facts, SWOT analysis, company profiles, etc) to full research reports that help you make decisions, our inventory is updated almost on a daily basis with the latest industry reports from domain experts that track more than 5000 niche sectors.
    One Stop Solution
    Need a custom research report on medical devices market? Require all available business intelligence on 3D printing industry? Exploring F&B sector of a particular country/region? RnRMarketResearch.com is your one-stop-solution to all market intelligence needs. We not only offer custom research and consulting services, we also "bundle" reports to meet your needs and help you fetch the data analysis you require for your business.
    Dedicated Client Engagement
    Not limited to only "finding" relevant reports for you, our client engagement team dedicates its efforts to understand your "business need" and accordingly maps available research data to help you move forward. Call "your" client engagement executive any time of your day and get your questions answered in order to make the correct business decision.
    Saving Time and Efforts
    Simply share your research requirement details with us and let us do all the hard work to find required intelligence for you. When you add up our "one stop solution" and "dedicated client engagement" services mentioned above, you obviously know the time and effort saving you do by working with us.
    Payment Flexibility
    Working with Fortune 500 organizations, we understand the importance of being flexible for payments. Share your payment terms with us and we will surely match up to them to ensure you get access to required business intelligence data without having to wait for the payment to be done.
    Post-Purchase Research Support
    Have questions after reading a report / datasheet bought through us? Not sure about the methodology used for data available in the research? Talk to us / Share your questions with us and if required, we will connect you with the analyst(s)/author(s) of the report(s) and ensure you get satisfactory answers for the same. Need more data / analysis / report(s) on the topic of your research/project? The RnRMarketResearch.com team is here for you 24X7 to support you with your post-purchase requirements. Subscription Offers & Packages (Get in touch with us for more details - sales@rnrmarketresearch.com / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs