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Tech Industry

Execs upbeat on IT spending

Amid mixed indications of software industry's health, polled tech execs predict spending rise.

A survey of 302 U.S. executives and business managers found that most expect to increase spending on information technology.

More than half, or 55 percent, of those surveyed by consulting firm Accenture said they expect to increase IT spending in the next three years, while only 10 percent expect to spend less.

The study is a bright spot on the IT spending horizon, where recent news has been mixed.

Software companies reported worse-than-expected second-quarter results, with a large number preannouncing poor results.

Some have blamed the perceived software slump on new executive accounting rules. Others have pointed to a general maturation of the software sector, with too many companies chasing after not enough customers.

Hardware companies have done better, by and large, and IT spending in general is on the rise after three years of decline. More growth is said to be on the way.

Accenture's study found that 84 percent of the surveyed decision-makers said productivity had increased in recent years. Most attributed that rise to "better use of technology" and "the right amount of investment in technology."

On the downside, about half of respondents said they didn't know how to make their IT departments accountable for "delivering real business value," and about half of the business managers said they weren't getting their money's worth out of their IT investment.

Companies surveyed in the study had at least 5,000 employees and $10 billion in median annual revenue.