IT budgets for the coming year are growing rapidly

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The IT budgets of fiscal year 2020 – which runs between 1 October 2019 and 30 September 2020 – have grown considerably compared to the previous year, according to research by TechRepublic. 26 percent of respondents said their IT budgets were $20 million or more.

In 2019, only 9 percent of respondents said their IT budgets were worth $20 million or more. By 2020, 2% even expect the budget to be between USD 250 million and USD 499.99 million.

On the contrary, the budgets for IT have been fairly stable in recent years. For example, 70 percent of respondents indicated that their IT budget for 2019 would be less than $1 million. In 2018, this was 62 percent and in 2017 66 percent.

Priorities are increasing

In the meantime, IT priorities are increasing. This year, security is a priority for 51 percent, followed by cloud services with 45 percent. The list is further supplemented by internal hardware and software purchases (37 percent), digital transformation (31 percent) and training of current employees (29 percent).

In previous years, these priorities were even different. In 2018 and 2019, 53 percent and 63 percent respectively indicated that security was the most important priority. In 2017, network security proved to be the highest priority, with 66 percent of the votes. 57 percent said they would continue to invest in network infrastructure.

In that year, 3 percent of the respondents also said they had an IoT application. In the meantime, 9 percent of the respondents indicate that IoT implementation will be an important priority for the IT budget in 2020.

Allocation of corporate budget grows

The allocation of corporate budgets to IT has also grown in recent years. For example, in 2017, 27 percent of respondents said that between 1 and 5 percent of the corporate budget was allocated to IT. In 2018 it rose to 36 percent and last year it was 39 percent.

By 2020, this number will have decreased slightly. 37 percent of respondents said that the budget allocated to IT was less than 5 percent of the corporate budget. By contrast, 13 percent say that 11 percent or more of the company’s total budget is spent on IT.