Corporate IT Budgets To Increase In 1998

Corporate IT budgets will increase by an average of 20% in 1998, according to a new survey. A study conducted by RHI Consulting (Menlo Park, CA) reveals that 66% of CIOs from nationwide companies expect their IT budgets to increase in 1998. Hardware purchases will see the most investment, according to the study; software upgrades are expected to take 26% of the financial pie. Not so good news for IT personnel: only 8% of 1998 budgets will be used for hiring. The survey includes responses from 1,400 CIOs from a random sample of U.S. companies with more than 100 employees. "Companies across all industries are making technology a priority in their 1998 budgets to help secure a competitive advantage," said RHI executive director Greg Scileppi. Companies should, however, beware of making technology their main concern. "As businesses budget for IT initiatives," he added. "They should account not only for software and hardware purchases, but also training and personnel."