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DATA Inc. ‘IT Decision 2014′ Survey: IT Spending Increased In 2014; Cautious Optimism for 2015

For Immediate Release

DATA Inc. ‘IT Decision 2014’ Survey: IT Spending Increased In 2014;
Cautious Optimism for 2015
Increasing Levels of Dissatisfaction With IT Reported

MONTVALE, N.J., Jan. 20, 2015 – Spending on information technology increased in 2014, and there is cautious optimism that this trend will continue in 2015, according to the results of DATA Inc.’s third annual information technology survey, released today.

In this year’s IT Decision 2014 survey, 81 percent of respondents indicated that their firm’s IT spending increased from the previous year, the same figure as reported last year. While 90% of this year’s survey participants said they don’t expect information technology budgets to decrease in 2015, only 56% believe IT expenditures would increase.

What’s interesting is that while a strong majority of survey respondents reported increased IT budgets each of the last three years, the percentage who forecast IT budgets would grow in the upcoming year has been on the decline, from 88% in 2012, to 70% in 2013, to 56% in this year’s survey.

“Technology initiatives continue to drive companies’ efforts to improve their internal processes, as well as efforts to better connect with customers and key stakeholders,” said Conrad Leao, DATA Inc. Vice President of Operations. “Among our customers, we see this IT investment in the form of leveraging Big Data, evolving computing platforms and the creation of innovation applications, to name a few.”

DATA Inc., a globally recognized information technology software and service provider, conducted the survey from October through December. It includes responses from more than 180 IT and business professionals in a range of positions, including executive management, business stakeholders, and IT developers and project managers. Participants were surveyed on a variety of topics including IT spending, employment, and technology outcomes in 2014 as well as their perspective on expected trends in 2015.

Looking at 2014 spending levels, 92% of respondents at mid-size businesses said IT spending had increased in 2014, while 83% of large business respondents reported increases. Even small businesses invested more in IT in 2014 vs. 2013, as roughly 65% of these respondents reported spending more than the previous year.

“At DATA Inc. we’ve noticed that an increasing number of mid-sized and small businesses have increased their IT spending over the 12-18 months,” said Arun Verma, CEO and founder of DATA Inc. “We believe as the cost of technology comes down, these smaller companies realize that they have the opportunity to catch up to their larger competitors.”

A report of the results can be found online at DATA Inc. 2014-2015 IT Industry Survey.

Along with an increase in spending, 2014 also saw an increase in IT employment, according to survey respondents, as 91% of survey respondents reported being employed. This represents a 3% increase over 2013, and a 10% increase over 2012.

While key indicators look positive, survey respondents identified several challenges in 2015 which have the potential to inhibit growth. Among these challenges are:

  • Increased competition for skilled labor
  • Increased dissatisfaction with IT service providers
  • Evolving rules and regulations

A majority of companies (76%) were either satisfied or very satisfied with their IT service providers in 2014, according to survey respondents, but the percentage of “least satisfied” jumped significantly. In 2014, 24% reported dissatisfaction, vs. 8% in 2013 and 9% in 2012.

“IT service providers should take note of the 16% jump in dissatisfaction and pay close attention to client satisfaction,” said Ashis Bhisey, Vice President of Technology at DATA, Inc.. “With similar services available to clients from multiple service providers, quality of service is a key differentiator for winning and retaining clients.”

Other findings from the survey:

  • IT spending in 2014 vs. 2013: There was little change from year to year, as application development, the testing and quality assurance work with those applications, service oriented architecture and infrastructure efforts were all listed as priorities by more than 50% of respondents.
  • Forecasts for 2015: According to respondents, not much is expected to change, led again by an emphasis in application development (61% of respondents) and service oriented architecture (56%).
  • Regarding planning and implementation of solutions, “cost” continues to be the big issue, at 61%, but “adaptation,” or adapting to new IT paradigms, rose significantly, from 30% to 43%. A lack of experts, or difficulties finding IT pros with the needed skillsets, was named by 40% of respondents, the highest in three years.
  • Offshoring levels on IT projects won during 2014 remained steady, as 48 percent of these projects involved this strategy, say respondents, similar to 2013’s 45%.

“Despite the survey’s findings regarding a de-emphasis of mainframe migration and reengineering, it remains a concern for our largest corporate clients who have large legacy application portfolios,” said Bhisey.

A report of the results can be found online at http://www.datainc.biz/send-casestudy-request_campaign_survey2015.asp?catid=CS-0000177&Type=http://www.datainc.biz/survey2014/2014_2015_survey_report.pdf .

About DATA Inc.

Since 1983, DATA Inc. (www.datainc.biz) has provided IT Solutions to organizations on the Fortune 100 list as well as the public sector. Throughout the organization’s 30-year history, DATA Inc. has grown into an award-winning full service IT solutions provider headquartered in Montvale, N.J. with development centers and offices throughout North America, Europe and Asia.

Contact:

Bob Zeitlinger
B To Z Communications
201-244-1213

George Nikanorov
DATA Inc.
201-802-9800 x 397

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