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Our Bureau

Bangalore, July 31 Technology research firm Gartner Inc said that IT budgets, which saw a decline in past two years, will increase by an average of 1.53 per cent in 2010.

It suggested that vendors work towards helping clients know where they can cut costs for better utilisation of resources.

Gartner surveyed approximately 1,000 IT professionals worldwide during April and May 2009 and respondents were asked whether they expected their 2010 IT budget to be below, be the same as or exceed the IT budget for 2009.

About 30 per cent of companies in Asia/Pacific, 28 per cent in North America, and 25 per cent in Europe, Middle East and Africa (EMEA) said they expected their 2010 IT budget to increase.

Software budgets in North America are still expected to decline 2.06 per cent while EMEA is only slightly positive at 0.45 per cent for 2010 compared with 2009. However, software budgets in Latin America will rise 2.54 per cent, while Asia-Pacific will see the highest increase at 4.34 per cent, showing a positive trend in increasing their software spending in 2010.

Gartner analysts said such a trend was a reflection of the relative maturity of the markets. Generally, the survey found software spending to be holding ground.

“Software vendors should continue to build, fund and invest in software sales and marketing programmes, even during tight market conditions to maintain customers and expand revenue opportunities,” said Ms Joanne Correia, Managing Vice-President at Gartner. “A market downturn is a disrupter that creates great marketing and sales opportunities for organisations prepared to take advantage of the right products, marketing programmes and funding.”

Gartner suggests that vendors must be able to differentiate with key integration technologies, vertical-market and line-of-business solutions/specialisation, and diversified customer base. They also need to improve on their abilities to strengthen relationships with IT and lines of business, build trust, and deliver true business-enhancing results.

“Vendors need to use a consultative selling approach to understand and then address the most critical needs of IT and the business of their current and prospective clients,” said Ms Correia.

More Stories on : Outlook | Software | Marketing Research

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