Small, midsized firms to spend $280B on technology by 2012
A research reveals more spending on ICT by companies with less than 100 employees in the next four years but current economic crunch will nevertheless affect this spending.
Small and midsized businesses will spend more on information and communications technology in the years to come but the current economic crunch will affect this spending, according to a research conducted by Compass Intelligence.
Called “Economy 2.0: New Challenges & Opportunities in Business ICT Spending,” the new five-part series of reports predicted that small and midsized firms would increase their ICT spending by 6% to 8% annually through 2012.
This year businesses with less than 100 employees will contribute 32% of ICT spending. By 2012, they will spend almost $280 billion, the report revealed.
Companies with employees numbering between 100-999 account for little ICT spending in the U.S. business market, according to the report, predicting that they will increase spending the fastest through 2012 when they will likely spend more than $133 billion.
The report further forecast U.S. businesses would spend $688 billion on ICT services, equipment, outsourcing, and personnel. Managed and hosted services, wireless, and some networking will grow the fastest between 2008 and 2012, according to Compass Intelligence’s research.
Kneko Burney, president and CEO of Compass Intelligence, said in a statement America is facing very serious economic conditions, which will not change overnight. “This means that businesses large and small will need to become more efficient and innovate if they are to survive the current crunch,” he said.
“Leveraging new technologies, particularly Web 2.0, where business customers leverage the Internet in new and creative ways to connect with their partners and customers, will drive business IT spending for the next couple years, with the greatest impacts being felt in the small business market,” he said.
“Beyond 2009, I expect to see the emergence of ‘Web 3.0’ for commercial businesses, where firms will use a combination of social networking, content and contact management, and e-commerce to generate new revenue, while improving the overall customer experience,” Burney added.
