Organisations set to increase IT spend, survey shows

Just more than half of Irish organisations expect their IT expenditure to increase next year with significant investments in big data analytics on the cards, according to a new survey.

However, the research also shows that many companies have yet to familiarise themselves with new data protection legislation due to be enacted.

The IT Trends and Expenditure in Ireland study from international research firm IDC shows a sharp rise in the number of companies preparing to increase their spend in 2017. In last year's corresponding survey, just 33 per cent of companies were looking at spending more on IT; this year 54 per cent say they are going to increase expenditure in 2017.

IDC consultant John Gilsenan, who prepared the study, said the Government sector, which has been "closed for business" for a number of years following the downturn, was behind the rise in planned expenditure.

“The public sector is getting back to the forefront of spending with some interesting investments planned across Government,” he said.

Mr Gilsenan said there was a positive outlook for IT expenditure in all sectors bar education, with finance, transport, telecoms, media and utilities all looking particularly strong.

EU legislation

As in previous years, IT security is considered a priority in terms of spend. The survey shows a key issue for 2017 is readiness for the EU’s general data protection regulation (GDPR) legislation, which requires organisations to be compliant by May 2018.

The research shows that as of now, more than half of organisations have yet to familiarise themselves with the regulation, suggesting they will face difficulties in being ready in time for its introduction.

According to IDC’s survey, almost twice as many organisations plan to move infrastructure to the cloud in the next two years than have done so already. In addition, some 30 per cent also intend to shift application development to the cloud.

Big data/analytics is seen to be at an early stage in Ireland but the study reveals that 42 per cent of organisations are planning to increase spending on related technology with 38 per cent also looking to increase their usage of such products and services.

“Ireland tends to be a follower, rather than a leader, in terms of expenditure but big data/analytics is an area where the country is a little ahead, which may be in part due to the Government driving it,” said Mr Gilsenan.

Just over a quarter of organisations surveyed claim to be undergoing digital transformation, considerably lower than elsewhere in Europe. Companies in the financial sector were found to be the most focused with 24 per cent already involved and 59 per cent planning to conduct an initiative in this area.

Lastly, the survey finds that Dell is back in outright top position as primary supplier of IT services after sharing the spot with others last year. IBM has edged out HP for second place.

The multinational suppliers, which in previous years have collectively lost market share to indigenous suppliers led by Version 1, Ergo, Datapac and PFH, reversed that trend this year.