"IT budgets have stopped bleeding," says Tom Pohlmann, senior analyst at Forrester.
C-level executives are more willing now to invest in computer systems than they were at the beginning of the year, according to Forrester. Fifty five percent of respondents describe their executives as willing to "spend what it takes" on IT. That's up nearly twenty percent from the beginning of the year. "Executive commitment to IT is returning," Pohlmann says.
Retail and consumer services firms will see the largest increases in IT spending, with budgets expected to grow by 7% or more over last year. Companies in the insurance and transportation industries were the most likely to plan on increasing IT spending in the second half of 2002.
Not surprisingly, given the extended slowdown in technology buying, IT budgets at high tech firms showed both the biggest drop from last year -- down 7 percent, on average -- and were the least likely to pick up anytime soon.
Spending plans also vary by company size: midsize firms -- those with annual revenues of less than $1 billion -- are more likely to raise budgets in the second half of the year, while larger firms are more likely to cut them.