Esp Technology Report


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Esp Technology Report

  1. 1. VIEWPOINTS FROM VANSON BOURNE’S QNA RESEARCH COMMUNITY In this issue... The State of the IT Nation Topics covered in Here are the findings of Vanson Bourne’s first this issue: ESP - technology survey. From now on we’ll be surveying senior decision makers in IT and in 1. Budgets Business regularly with the aim of giving 2. Staffing levels vendors of all kinds an insight into the concerns 3. Scrutiny and priorities of your target markets. The topic for the first survey was obvious - how the economic situation has affected IT activity. And it is not all gloom and doom. Certainly “Project priorities budgets and staffing levels are lower, but there and scope are is also a new realism about IT project priorities remaining the same and how, why and when to assess the value so far but looking they deliver to the business. for greater discount/value from suppliers” The content on the following pages derives from our survey of 300 Senior IT decision makers in UK Enterprise (1000+ Enterprise Manufacturing employees) and Mid-market (250-999 employees) Company —Packaging businesses. The sample was drawn from Vanson Bourne’s QNA online research community and the research took place in May 2009. page 1 01635 550449
  2. 2. What do your current year's IT budgets look like? “[Current budgets] cause a strain on 70 % projects and less- 60 % than-urgent 50 % 40 % changes. They also 30 % focus the minds of 20 % users and the 10 % business on what is 0 % really necessary.” Total Financial services Manufacturing Retail,  distribution or  Other  commercial Mid‐market Enterprise transport Enterprise Finance Company Smaller than last year Same as last year Larger than last year • Over half our respondents reported that their current IT budget is smaller than last year, with an average decrease of 19%. “Only necessary • Less than a fifth of respondents are enjoying budget increases. investment is being considered this year • Within this tiny minority, Enterprise businesses saw budget growth of until the full 31% on average, twice the level of smaller companies we surveyed. implication of the • The worst-hit sector was manufacturing, where 2 in 3 respondents global economic reported an IT budget cut. slowdown is understood.” How is this reduction/freeze in budget affecting things? Enterprise Media Company 40% 35% 30% “As budgets are 25% reduced it generally 20% 15% becomes necessary 10% to manage by re- 5% prioritising, which 0% necessarily involves Reduction in  Essential  No effect Cost saving Delay in  Quick ROI Reduced head  projects projects only/  deployment count prioritisation revisiting business cases and reducing Respondents with static/lower budgets told us what was happening as a time to market.” result. This chart categorises their responses to reveal the principal issues. Enterprise • A third told us that the number of projects has been reduced and a Telecommunications quarter said they have cut back to essential projects only. Company • Refreshingly, 1 in 4 said there was no negative effect. page 2 01635 550449
  3. 3. What are IT staffing levels like compared to last year? “Increased pressure on existing staff and 60 % a greater need for 50 % 40 % contractors” 30 % 20 % Enterprise Technology 10 % Company 0 % Total Financial services Manufacturing Retail,  Other  Mid‐market Enterprise distribution or  commercial transport Same Down Up “Fewer IT • 40% of all respondents told us they now had fewer staff. Approaching contractors means half the enterprise businesses had experienced this versus around a more projects third of mid-market respondents. having to be • The worst-hit sector for IT job losses was retail, distribution or completed in house. transport, with 50% reporting decreases. The average was a hefty Detrimental as 25% of the IT workforce. existing staff don't • Surprisingly, perhaps, the most impervious sector was financial always have pre- services, where 25% of businesses said the IT department roster had requisite skills.” risen over the past year. Enterprise Retail Company How is [your staffing level decrease] affecting things? 35% 30% “Fewer people 25% doing essentially the 20% same work, 15% although 10% virtualisation of 5% servers and 0% consolidation of Busier Delays No effe ct Reduction of  Reprioritisation Reduced  Low morale Increased focus  data processing activities support on ROI centres has helped.” If respondents had a decrease in their headcount, we asked them how this was affecting things. Enterprise Manufacturing Company—Packaging • Higher workload coupled with delivery delays were the obvious main outcomes. • One in six reported “No effect” from a shrinking IT team. page 3 01635 550449
  4. 4. Is there more scrutiny of value-add/ROI now than in last 1 or 2 years? “ROI period has reduced from 3 80 % 70 % years to 12 months” 60 % 50 % Enterprise Law Firm 40 % 30 % 20 % 10 % 0 % Total Financial services Manufacturing Retail,  Other  Mid‐market Enterprise “More time distribution or  transport commercial consuming and more Yes No Don't know documentation but • Two thirds of all respondents said that there is now more scrutiny of improves ROI than before, not simply at the time of purchase but through the accountability and delivery cycle. delivery. Helps in • Financial services, where IT budgets have not reduced as much, is ensuring clear seeing the greatest increase in ROI scrutiny, to ensure value. specifications are delivered” • The larger the business, the more IT spend is put under the microscope - in 70% of enterprises versus 60% of the mid-market. Enterprise Healthcare Company How is this increase manifesting itself? 60% “There is a move to 50% change the budget 40% to be for services 30% rather than by desktop supported. 20% Those taking the 10% service will therefore pay for what they 0% Changes to  Projects  Greater need to More reporting Reprioritisation Busier Fewer  Reduced  No change approval  stopped/  prove ROI proposals standard ROI  use.” process delayed period Enterprise Construction We asked respondents whom reported an increase in scrutiny how this was Company manifesting itself. • Clearly project approval processes are now more rigorous and this is resulting in both cancellations and delays in projects getting off the ground. page 4 01635 550449
  5. 5. ABOUT VANSON BOURNE Vanson Bourne has been delivering high quality, great value research to the For research that technology sector since 1999. We research both technology and business managers in all business sectors and geographies from Europe to Africa and from translates quickly AsiaPac to the USA. We combine big company capability with small company responsiveness. into results... We work with technology clients large and small, often in conjunction with their third-party marketing support companies, to provide research that translates quickly into results. “Vanson Bourne’s Click here to learn more consultancy advice and great value Click here to read testimonials research has helped us to create white Click here to view white papers papers of think-tank quality and our Click here for Customer satisfaction research campaigns with them have won a host of industry awards.” ABOUT QNA ESP newsletters are drawn from surveys of Vanson Bourne’s online research community, QNA. Making sure we can reach the right person in the right organisation at the right time is the key if Vanson Bourne is to deliver meaningful, Linking vendors independent, and cost effective research to our clients. Thanks to QNA we can with the opinions guarantee fast, efficient, robust research that delivers and won’t break the bank. of high value IT QNA members are senior decision makers in both technology and business strands, in all sectors, and from Enterprise level organisations down to SME and micro and business businesses. leaders... Click here for more on QNA Click here for what QNA members say Vanson Bourne Ltd CONTACT US 25 Liberty House, New Greenham Park, Newbury, Berkshire RG19 6HW Tel: 01635 550449 Email: visit