Spend through channel to rise

IDC survey paints bright picture as budgets begin to improve

IT budgets are set to increase in 2004, and much of the spending will go through the channel, according to IDC's latest European Vertical Markets survey.

The analyst has claimed that 35 per cent of western European companies plan to increase their overall IT budgets, and 26.6 per cent expect to allocate more resources to new initiatives.

System integrators, consultants and software firms will absorb the bulk of this spending, the report claimed.

"This is particularly true for banking, manufacturing and business services," said Giuliana Folco, research director, European vertical markets at IDC.

"VAR recruitment is critical because a significant percentage of firms plan to increase their spending through the channel in 2004."

IDC predicted that VARs will benefit in the retail, telecoms, transport and utilities sectors.

Greg Carlow, managing director of VAR Repton, said: "We have seen strong growth in finance, retail and online gambling. But now firms tend to be less enthralled with technology and need more hand-holding."