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February 7, 2013

Majority of Western European SMBs plan to increase external spending in 2013: IDC

SMBs currently spend 70% of their budget maintaining and running IT.

By CBR Staff Writer

According to a new study by the International Data Corporation (IDC)45% of small and midsized businesses (SMBs) in Western Europe are planning to increase external IT spending in 2013.

IDC said it also found that the majority were planning to keep external spending stable for the year to come.

The study states that in 2013, 36% of SMBs plan to keep external spending as it was the previous year, which shows some SMBs are being cautious about spending.

Flexibility, improved productivity, and reduced operational costs will be factors under strict consideration for which SMBs will increasingly require the help of better use of IT, IDC revealed.

SMBs currently invest 70% of their budget to maintain and run IT while 20% are devoted to innovation and growth.

IDC European Industry Solutions research manager, Angela Vacca, said: "Western European SMBs are still facing tough times, but they are adapting to the new market conditions and consider IT a viable way to maintain their competitiveness and market positioning."

"Across SMBs, flexibility is key to success, and we expect midsize companies in particular to make better use of their IT resources and to invest in key strategic IT spaces both to achieve short-term objectives and to start implementing a longer-term view for their business," Vacca added.

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Last month, a survey by Google found that while 39% of SMBs expect to increase their use of online collaborative tools, many are still clinging to more traditional methods of communication like phone and email.

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