Improved economic health in mid-size companies – those with between 100 and 1,000 employees – is being reflected in increased IT spending, according to a recent IBM survey entitled “Inside the Midmarket: A 2011 Perspective.”
The Q4 2010 survey of 2,000 companies in 20 countries reveals that 53 percent of respondents see their IT budgets growing in 2011, while 31 percent see them remaining at current levels and 16 percent are either unsure or are expecting further IT budget cuts.
“Midsize firms are increasing their investment in IT, striking a balance between solutions that drive short-term cost savings and those that enable revenue growth and stronger customer relationships,” according to the IBM report. “Globally, managing costs, improving efficiencies, driving up productivity, and focusing on superior customer service are all cited as critical business priorities.”
A comparative IBM survey in 2009 revealed major emphasis on cost-control among 53 percent of respondents. This year, only 21 percent say that’s their primary focus. Nearly 80 percent of CEOs in the newest study list their top priorities as customer focus, innovation and growth.
Looking specifically at IT budgets, some 75 percent of respondents said they intend to improve their IT infrastructures to “ensure flexible resilient, scalable, and secure IT systems.” Seventy percent see additional IT budget dollars going to improving employee productivity and “better focus on the customer.”