Western European SMBs' IS Operating Budget Dynamics, Channel Selection, and Customer Satisfaction

SUMMARY

This study draws from the results of IDCs European Vertical Market survey, carried out inNovember/December 2003 among 1,178 SMBs with between 20 and 499 employees, in the top 5 WesternEuropean countries.

By analyzing IS operating budget dynamics, channel selection, and companies satisfaction withtheir primary IT supplier, the study shows that:

• SMBs continue to spend the majority of their IS operating budget externally. Healthcare andgovernment stand out for their reliance on external spending.
• The uncertain economic situation in 2003 caused Western European SMBs to adopt a conservative ITinvestment policy and go for major cost reductions, thus having a negative effect on both ISinternal and external spending.
• Direct sales by manufacturers and local or national IT vendors will absorb the majority of ISbudgets, followed by VARs, which will also play a relevant role in the Western European SMB market.
• SMBs are very satisfied with the quality of service, technical skills, and reputation of theirprimary IT suppliers, but less satisfied with the cost of ownership of IT products and services, acrucial factor when choosing an IT supplier. Vendors should therefore pay attention to this point.

TABLE OF CONTENTS

In This Study

Methodology

Definitions

Situation Overview

2003 IS Operating Budget in Western European SMBs

future Outlook

2004 Expected Change in IS Operating Budget in Western European SMBs

Essential Guidance

Learn More

Related Research

LIST OF TABLES

• Vertical Market Quotas
• Company Size Quotas
• Number of Completes by Country
• Western Europe SMBs, 2003 Distribution of IS Operating Budget Between Internal and ExternalSpending by Company Size, Country and Vertical Market
• Western Europe SMBs, 2003 Distribution of IS Operating Budget Among Spending Areas by CompanySize, Country, and Vertical Market (% of IS Operating Budget)
• Western Europe SMBs, Percentage of IS Operating Budget Devoted to Web-Enablement Initiatives in2003 by Company Size, Country, and Vertical Market
• Western Europe SMBs, Primary Supplier of IT Product and Services by Company Size, Country, andVertical Market (% of Companies)
• Western Europe SMBs, Most Important Reasons for Choosing Companies Primary IT Supplier byCompany Size, Country, and Vertical Market (% of Companies)
• Western Europe SMBs, Rating of Primary IT Suppliers Performance by Company Size, Country andVertical Market (1 = Poor; 5 = Excellent)
• Western Europe SMBs, Expected Change in IS Operating Budget in 2004 by Company Size, Country,and Vertical Market (% of Companies)
• Western Europe SMBs, Expected Change in IS Operating Budget in 2004 by Spending Area, CompanySize, Country, and Vertical Market (% of Companies)
• Western Europe SMBs, Expected Change in 2004 in the Share of External Spending by Company Size,Country, and Vertical Market (% of Companies)
• Western Europe SMBs, 2004 Expected Percentage of IS Budget Devoted to Web- EnablementInitiatives by Company Size, Country, and Vertical Market
• Western Europe SMBs, 2004 Primary Source of IT Products and Services by Company Size, Country,and Vertical Market (% of Companies)
• Western Europe SMBs, 2004 Expected IT Budget Breakdown by Source, Company Size, Country, andVertical Market (% of Total External IT Budget)
• Western Europe SMBs, 2004 Expected Software Spending Breakdown by Source, Company Size, Countryand Vertical Market (% of Total Software Spending)
• Western Europe SMBs, Expected Change in the IT Budget Share Allocated to IT Sources in 2004 byCompany Size, Country and Vertical Market (% of Companies)