Mid-market firms preparing to invest in 2011

Major global study commissioned by IBM reveals that 62 per cent of UK firms expect increased IT budgets this year

A significant number of mid-sized UK firms are planning to increase their IT budgets over the next 12 to 18 months, according to a major independent study commissioned by IBM.

For the report, Inside the Mid-Market: A 2011 Perspective, Big Blue commissioned research house KS&R to survey more than 2,000 mid-sized firms employing between 100 and 1,000 staff in more than 20 countries.

The companies said they will be investing in a range of technologies including cloud computing, analytics, collaboration, mobility and customer relationship solutions. Breaking down the results to the UK market, 62 per cent expect their IT budgets to increase over the next 12 to 18 months, compared with 11 per cent in the 2009 survey.

Conversely, 19 per cent expect their IT budget to remain unchanged in 2011 and 19 per cent felt they would decrease or said they were unsure.

Interestingly for the channel, 74 per cent of respondents plan to pursue a consultative versus purely transactional relationship with their primary IT provider.

Top barriers to IT adoption cited in the survey were difficulty in acquiring and implementing technology, and a lack of IT skills and resources. A third of respondents cited access to affordable financing as a barrier.

The cloud was attractive to respondents because of the promise of cost reduction, better manageability of IT, improved system redundancy and remote access.

Lubomir Cheytanov, mid-market business leader IBM UK & Ireland, said: “The survey findings show that medium-sized companies are tackling a new set of opportunities to advance their role as engines of economic growth.

“Eighteen months ago, most were focused on reducing costs and improving efficiencies. Today the conversation is also about expanding their business, connecting with customers and gaining greater insights,” he added.