IS Budget Dynamics and Western European SMBs: IDC Study Finds a Slowly Improving Situation for 2013
06 Feb 2013
MILAN, February 6, 2013 — A new study by International Data Corporation (IDC) highlights the business outlook and IT budget dynamics across Western European SMBs.
The study found that:
- The highest share of SMBs (45%) plan to increase external spending in 2013; last year, we found that the majority were planning to keep external spending stable for the year to come. This year, 36% of SMBs plan to keep external spending as it was the previous year, showing that caution still applies to a large slice of the SMB market. Still, the improvement with compared with our previous survey is significant.
- External IT spending is expected to change in 2013 over 2012: if we compare the external IT budget change in 2012 with the one expected for 2013, we see that SMBs believe in the value of improving their IT in the current year as the balance between those companies planning to increase it and those planning to decrease it rises from 23% in 2012 to 31% in 2013. Healthcare and utilities/oil and gas SMBs are the best performers.
- On the other hand, the business outlook compared with our 2010 and 2011 survey data is continuing to worsen, with small and medium-sized government institutions having the most negative perception, while manufacturing and finance are more positive.
- Overall economic conditions are still unstable, and we expect SMBs to continue to reconsider and adjust their plans. Flexibility, improved productivity, and reduced operational costs will be items under strict consideration for which SMBs will increasingly require the help of better use of IT, as they currently spend 70% of their budget maintaining and running IT. Only 20% is devoted to innovation and growth.
"Western European SMBs are still facing tough times, but they are adapting to the new market conditions and consider IT a viable way to maintain their competitiveness and market positioning," said Angela Vacca, research manager, IDC European Industry Solutions. "Across SMBs, flexibility is key to success, and we expect midsize companies in particular to make better use of their IT resources and to invest in key strategic IT spaces both to achieve short-term objectives and to start implementing a longer-term view for their business."
The study — SMBs and IS Budget Dynamics for 2013: A Slowly Improving Situation (IDC #MM01V, February 2013) — leverages results from the recent IDC European Vertical Markets Survey 2012, which surveyed 1,603 Western European companies, including 791 small and midsize companies with 20–499 employees. To find out more about the survey methodology and coverage, please refer to IDC's free methodology study, A Look Into 2013 Vertical Markets and SMBs: IDC European Vertical Markets Survey 2012, Methodology (IDC #M11U, October 2012).
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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