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Forrester: At Least Half of ANZ companies Plan to Increase Mobile-related Spending

Mobile has emerged as a technology spending priority in ANZ, according to a new Forrester Research report by Senior Analyst Tim Sheedy on the ANZ technology budgets and priorities for 2014. According to the research, Software will see the largest increase in spending, while at least half of ANZ companies plan to spend more on smartphones (54%), tablets (52%), and mobile applications and middleware (50%).

"Anecdotally, Forrester has witnessed a marked increase in spending on mobile application developers in particular," wrote Tim Sheedy, Senior Analyst, Forrester Research in the report. "This is likely to rise as more companies begin to embrace a "mobile-first" attitude."   Key findings from the report include:

  • Tech services spending is forecast to increase. As organizations struggle to keep up with the many emerging technologies and faster pace of IT, spending on IT outsourcing, consulting, and systems integration will increase from around 13% of tech spending in 2013 to 15% in 2014. 

  • The mobile mind shift is real — and it's playing out in technology spending. Three of the top seven categories on which ANZ organizations will increase spending in 2014 are mobile-related. At least half of ANZ companies plan to spend more on smartphones (54%), tablets (52%), and mobile applications and middleware (50%).

  • The free fall in hardware spending will continue. Technology budgets have been growing, but hardware is going backward at an even faster pace. In 2011, hardware spending was around 19% of IT budgets, in 2012 it was 17%, and in 2013 it finished at approximately 16%. In 2014, hardware spending will decline to around 13% of overall tech spending — a drop of nearly one-third in just four years. Much of this is due to the growth in as-a-service offerings and the falling price of IT equipment.

  • Software will see the largest increase in spending; software and staff salaries and benefits will be the only categories with above-average growth in 2014 (See Figure below)

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