Medium-sized enterprises invest more in IT - but stay less ambitious

Medium-sized enterprises - 500-1,000 employees - are less ambitious in their IT use than larger enterprises, but have increased their IT budgets faster in 2008 than large organisations, suggests IDC's latest enterprise services survey.

Almost 50 per cent of the survey participants had increased their IT budgets for 2008, a share a little above that of larger enterprises, and their increases were also slightly larger.

Services are a key investment area, IDC finds. Security tops the investment agenda, followed by infrastructure modernisation and application modernisation. New software solutions have lower priority.

The results of the survey of 196 enterprises with 500-1,000 employees are presented in the study 2008 Survey, Western European Medium-Sized Enterprises Less Mature Than Large Enterprises - Investing to Catch Up.

Two-thirds of medium-sized organisations already use outsourcing to some extent and a third are ready to invest in more or invest for the first time. But cost reduction is a more important driver of outsourcing spend for these organisations than it is for larger enterprises.

"Medium-sized enterprises are investing strongly, following similar strategies to those of the largest enterprises," says Mette Ahorlu, consulting director of IDC's European Software and Services group. "Their lower level of internal technical knowledge and experience leads them to rely more strongly on advice from vendors, which should adapt their messages to this fact when addressing the segment. This means that medium-sized customers must have major confidence in their service provider, and that the existing relationship plays a much stronger role in this segment than among larger enterprises."

Further information: www.idc.com

Image: Two-thirds of medium-sized organisations already use outsourcing and a third are ready to invest in more or invest for the first time

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