With optimism about business prospects and economy, IT spending will increase 3.8 per cent in 2004 on the back of a strong growth in professional services, retail, wholesale and banks, according to analyst firm IDC.
This will also fuel IT investments in 2004 by 3.8 per cent, IDC said in its latest Enterprise Technology Trends.
It said cost-cutting measures and cost control remain the focus for more than one-third of organisations in 2004.
Nonetheless, for 30.8 per cent of IT and business executives, developing and implementing new strategic applications to improve their organisations' competitiveness, will represent the main areas of IT focus during the next 12 months, it said.
"For the first time in a long time, survey respondents stated a positive outlook with regard to the economy as well as their prospects for business," Lucie Draper, programme manager, IDC said.
Organisations are also increasingly optimistic in their anticipation of improved business for the next six months.
Though cost control remains the priority area, executives are approving IT investments that simply generate a quick return on investment, Draper said.
Industry specific solutions, CRM initiatives and enterprise resource management solutions are expected to continue to drive investments in 2004, IDC said.