Only 0.9% of Spanish companies questioned currently spend more than $410,000 a year on information technology according to a recent survey conducted by the consultant CB Consulting Mercado SA. A Computing Espana report says 2.2% spend between $164,000 and $410,000, 7.6% spend between $41,000 and $164,000, 19.7% spend between $8,200 and $41,000, 36.2% spend less than $8,200, and 33.4% declare no outlay whatsoever, or did not reply. When interpreting these figures, it must be remembered that large corporations, which have a higher profile in other European countries, are distinctly thin on the ground in Spain, where small and medium-sized businesses predominate. However, there is no doubt that Spain is lagging behind many of its European neighbours, with businesses setting aside, on average, about 5% of annual revenue for investment in information technology. The report’s findings also tend to suggest that this expenditure is generally made in a series of steps, rather than all at once. According to SEDISI, the Spanish Association of Information Technology Companies, the finance sector continues to be a driving force in Spain, accounting for 29.7% of all information technology purchases in the period October 1994 to September 1995. Public service companies account for 26.8%, industry 18.4%, down from 21.6% the previous year and Public Administration is responsible for 15.3% down from 16.6% the previous year. The latter has traditionally been one of the information technology suppliers’ most important clients, but central, regional and municipal governments have progressively reduced their orders in recent years. Public Administration has always been slow to divulge figures, but there is no doubt that its investment has been on the decline since 1990; its most recent IRIA report, published in 1994, confirmed that spending on new systems fell 10.5% between 1991 and 1993. SEDISI concludes that the only sector where there appears to be increased demand is the small office segment – accounting for 3.4% of all purchases in the year ending September 1995, up from 2.3% last time. As for the immediate future, CB Consulting’s report provides scant encouragement: 50% of businesses consulted said that they had no immediate need to invest in systems, since their requirements were already covered. However, the remaining 50% predicted that their spending in 1996 would exceed that of the previous year, with an increased number of firms declaring a budget of $164,000 or more. According to the CB report, hardware will represent 60% of the coming year’s purchases, software 25%, and services 10%.
