Global 500 and Fortune 1000 companies will have $2.6 trillion to spend on IT over the next 5 years

IDC estimates that Global 500 and Fortune 1000 companies will spend close to $494 billion on IT in 2007. These companies together will have $2.6 trillion to spend on IT over the next five years.

The top IT initiatives within these organizations, which vary by industry and region, include:

  • Developing new strategic applications to improve competitive positions
  • Controlling costs, and improving the financial justification for continuing IT investment 
  • Migrating older technology to modern hardware and software platforms

Computer usage within Global 500 and Fortune 1000 companies differs slightly by region and vertical. Only 63% of the respondents indicated more than 80% of their employees have computers, suggesting room for further PC penetration.

 
Companies in the United States rely on IT to reduce operational costs, while companies in Asia/Pacific expect IT to help improve the effectiveness of sales and marketing.

Line of business managers in Global 500 and Fortune 1000 companies have significant purchasing power not only because IT has become more integrated with business functions, but also because they have cash readily available to spend on IT.

"IT suppliers can do a number of things to capitalize on Global 500 and Fortune 1000 companies' IT investment and strategies," says Anne Lu, program manager for IDC's Worldwide Vertical Market Research. "When marketing IT products and services to the Global 500 and Fortune 1000, strong ROI statements, which speak to costs, should be balanced with a value proposition that is tied to operational efficiencies. This value proposition not only underscores the ROI; it also communicates to customers that they have an opportunity to differentiate based on customer experience and/or productivity."

This IDC study explores IT investment trends of the world's largest companies — Global 500 and Fortune 1000 companies. It provides IT suppliers with better insight into how leading enterprises across different vertical markets are executing their IT strategies. The study also provides guidance to IT vendors on how to effectively allocate sales and marketing resources to best penetrate these large global accounts.

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