In spite of the dotcom slump and economic slowdown, European firms are not reducing their expenditure on information technology, according to a report from IDC.

Of the 550 businesses surveyed in the European Technology Barometer 2002, 82% plan to keep levels of IT investment steady this year.

However, the focus of their expenditure will shift away from buying new systems towards integrating the tools they already have in place.

“We have been through a period where companies have spent a lot on things like customer relationship management software and enterprise resourcing planning and are now looking to ensure that those things are tied together internally to improve their business,” commented IDC analyst Richard Robinson.

Such technology appears to be increasingly vital to companies. Around 87% of surveyed firms believe IT and the internet are important factors affecting their business, while two-thirds think they play a substantial role in hitting targets.

Data sourced from: Financial Times; additional content by WARC staff