Experton forsees 5% growth in German IT services in 2006

Experton Group has just published a survey of 60 German enterprises on their IT priorities, budget plans, outsourcing inclinations, industry trends and preferred suppliers and IT services for companies in D.C. in the IT field.

The surveys suggest that German firms plan expenditure increases between 5 and 30 per cent, suggesting that the budget for IT services of 2005 on 2006 will noticeably grow. Experton Group’s expectations are that the ‘external’ market for IT services will grow in 2006, altogether by around five per cent.

Expenditures on hardware are growing at slightly more than half of the enterprises, while a third plans to spend less. Enterprises expect modestly rising expenditures for software: only 16 per cent will roll spending back while majority of the enterprises plans to keep their software budget fairly stable.

The highest priority for around 80 per cent of the IT directors surveyed is Business-IT alignment: the consistent adjustment of the IT strategy to meet the needs of the business. “IT departments cannot win friendly agreements with the specialized divisions and the management of their businesses” says Andreas Burau, executive committee and ICT Research Director of Experton. “Instead they are demanded to make an active contribution to help the business hit its targets through innovation and differentiation. To do that requires business know-how.”