ICT Media

ICT budget and staffing trends in Manufacturing - Enterprise ICT investment plans

  • KAB110132
  • 33 Pages
  • November 2013
  • ICT Media
Synopsis
This report presents the findings from a survey of 166 manufacturers regarding their Information & Communications Technology (ICT) budgets and staff allocation. The survey investigates how manufacturers currently allocate their ICT budgets across the core areas of ICT spend, namely hardware, software, IT services, communications and consulting.
Scope
Understand how ICT budgets are set to change in 2013 in terms of their overall size.

Appreciate how budgets are allocated across the core elements of ICT spend, including hardware, software, services, communications and consulting.

Learn how ICT money is being spent in areas such as the data centre, applications, IT management and the network.

Establish how IT staff are typically allocated within manufacturers.

Gain insight into with whom manufacturers plan to spend their ICT money.
Summary
Why was the report written?
In order to provide a depth of insight into ICT vendors and service providers potential customers.

What is the current market landscape and what is changing?
ICT expenditure was always overlooked as an expense in the manufacturing industry. With business process streamlining as a key priority, manufacturers are increasing their ICT spending to improve their operational efficiency and remain competitive by making investments in the likes of enterprise applications.

What are the key drivers behind recent market changes?
Technology trends such as supply chain management, enterprise resource planning, and business intelligence are primarily influencing the ICT investments in this sector. Increasing patent violations are also compelling manufacturers to invest in IT security solutions.

What makes this report unique and essential to read?
Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Budgets. Very few IT analyst houses will have interviewed 160+ ICT decision makers in the manufacturing industry in H2 2012.
ReasonsToBuy
Technology expenditure amongst manufacturers is being driven by their need to improve efficiency and quality through the adoption of technologies such as computer aided manufacturing (CAM) and computer aided design (CAD).

In addition to spending on in-house data centres, manufacturers are looking to outsource their data centre operations as they offer considerable advantages, such as cost reduction and ease of management.

According to Kables survey, manufacturers are spending the highest proportion of their ICT budgets on internal development and maintenance in 2012 and 2013, primarily to strengthen their in-house project development capabilities, support innovation, and increase transparency.

A considerable portion of IT consulting budgets is also being channelled to training, education and other consulting, since it is important for manufacturers IT staff to have the necessary skills and knowledge required for the smooth running of their operations.

Due to the diversified geographic coverage of manufacturers, telecommunications assumes an important role in bringing down costs and increasing connectivity and collaboration across various manufacturing units and other functional areas.
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