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Information Technology Industry Business Outlook and Procurement Survey H1 2017

Information Technology Industry Business Outlook and Procurement Survey H1 2017

Summary

GlobalData’s Information Technology Industry Business Outlook and Procurement Survey H1 2017, examines executives’ opinion on the business outlook and procurement activities over July 2017-December 2017. Organizations can know about key business priorities, supplier price variations, changes in capital expenditure, and organizations’ perspective on e-procurement. Additionally, it provides information categorized by region and company type.

In the midst of uneven economic conditions, rising competition, and pricing pressure within the IT industry, companies are planning to increase focus on expansion in current market, improving operational efficiency, and new product development in H1 2017 (July-December 2017). Mergers and acquisitions are expected to increase within the IT industry in H1 2017. Additionally, global IT industry business executives expect a surge in capital expenditure on new product development and research and development over the next six months. Globally, IT organizations’ procurement expenditure is expected to increase by an average of 4.3% over the next six months.

What else does this report offer?

  • Key business priorities: examines the IT companies’ important priorities for July 2017-December 2017
  • Emerging and developed markets: provides information about key emerging and developed markets, which will offer the most growth over the next six months
  • Change in M&A activity: analyzes IT industry executives’ opinion on changes in merger and acquisition activity globally
  • Business concerns: identifies major business concerns that are likely to impact manufacturers and suppliers
  • Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally
  • Change in procurement activities: evaluates how procurement activities will change in the IT industry over the next six months
  • Procurement budget outlook: projects procurement budget allocation along with changes in procurement expenditure over July 2017-December 2017
  • Supplier prices outlook: determines the expected change in supplier prices over July 2017-December 2017
  • E-procurement: identifies executives’ perspective towards e-procurement within the IT industry
Scope
  • The top three key expected priorities as identified by respondents are: expansion in current markets, improving operational efficiency, and new product development
  • Developed markets such as the US, the UK, and Germany are identified as important regions for growth over the next six months by IT industry respondents
  • New product development, and research and development are projected to record a significant increase in capital expenditure over the next six months
  • Executives expect procurement activities for IT services and technology and license purchases to increase during July-December 2017
  • In total, 28% of executives who operate in North America have no awareness about their organizations’ e-procurement
Reasons to buy
  • Highlights key business priorities thus helping IT companies to realign business strategy
  • Develop or adjust business expansion plans by using significant growth-offering emerging and developed markets
  • Make changes in procurement budget allocations through procurement budget projections anticipated by executives for July 2017-December 2017
  • Implement effective price management by viewing supplier price variations highlighted for the next six months.


  • Introduction
    • Definitions
    • Methodology and Sample Size
    • Respondent Profile
  • Global Business Outlook in July2017–December 2017
    • GLOBAL BUSINESS OUTLOOK: KEY TAKEOUTS
    • The highest number of respondents state that expanding in current market is expected to become a key priority over the next six months
    • Of executives who operate in the Rest of the World, 63% highlighted focus on sustainability as a top priority for the next six months
    • The majority of respondents from large companies are focused towards improving operational efficiency over the next six months
    • Over the next six months, executives expect India and China to offer more growth
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months? (Overall)
    • The majority of respondents with business operations in Europe anticipate Brazil will offer significant growth during the next six months
    • The majority of respondents from large companies are optimistic about growth prospects offered by China and India over the next six months
    • The survey reveals that the US and the UK are forecast to offer significant growth prospects for the IT industry over the next six months
      • Table Which developed markets are expected to offer significant growth opportunities for your industry over the next six months? (Overall)
    • Overall, 50% of respondents from Asia-Pacific expect Singapore to offer significant growth opportunities in H1 2017
    • The highest percentage of respondents from large companies indicate the UK as the top growth offering developed market in next six months
    • The highest percentage of IT industry executives project an increase in merger and acquisitions activity over the next six months
    • Of respondents who operate in Rest of the World, 38% foresee no change in mergers and acquisitions activity in the coming six months
    • In total, 56% of respondents from medium-sized companies anticipate an increase in mergers and acquisition activity during the next six months
    • OPINION ON MERGER AND ACQUISITION ACTIVITY: IN THEIR WORDS
    • Rising competition is projected to be the major concern in the IT industry over the next six months
    • Over the next six months, the majority of executives from Europe expect market uncertainty to become the key concern
    • The largest percentage of respondents from medium-sized companies are apprehensive about regulatory change during the next six months
    • Capital expenditure on research & development is expected to increase by 1% to 5.99% over the next six months
  • Procurement Behaviors and Strategies
    • PROCUREMENT ACTIVITIES OUTLOOK: KEY TAKEOUTS
    • The majority of respondents identify increased use of technology in the IT industry over the next six months
      • Table In what ways do you expect your procurement resources and objectives to change over the next six months? (Overall)
    • Across all regions, the largest number of executives anticipate their organizations to focus on increased use of technology over the next six months
    • Overall, 78% of executives from medium-sized companies highlight plans to reduce operating costs during the next six months
    • Of executives, 42% anticipate the procurement of technology/license purchases to increase somewhat over the next six months
    • The majority of respondents who operate in Europe expect an increase in IT services
    • The highest number of respondents from small companies express more focus on technology/license purchases in the coming six months
    • Overall, 11% of executives anticipate their global procurement budget will range between US$1 million and US$50 million over the next six months
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of overall and regional responses)
    • Among the respondents from small companies, 28% expect their procurement budget to be up to US$100,000 during the next six months
    • Globally, IT organizations' procurement expenditure is expected to increase by an average of 4.3% over the next six months
    • Overall, 45% of executives from medium-sized companies anticipate procurement expenditure to increase between 5% and 9.99% during the next six months
    • In total, 38% of respondents anticipate that supplier prices will increase somewhat during the next six months
    • Overall, 75% of respondents who operate in the Rest of the World foresee a marginal increase in supplier prices in the coming six months
    • The highest number of respondents from small companies expect a marginal increase in supplier prices during the next six months
    • Of industry executives, 28% state limited or generalized deployment of eprocurement within their organizations
    • In total, 28% of executives who operate in North America have no awareness about e-procurement within their organizations
    • Of respondents from small companies, 12% highlight evaluation or pilot use of eprocurement within their organizations

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