Evaluating the feasibility of information systems investments: recent UK evidence and new approaches

This size and continuing growth in IT investments in the United Kingdom, coupled with a recessionary climate and concerns over cost containment in the period from early 1990, have served to place IT issues above the parapet in most organizations, perhaps irretrievably. IT expenditure across private and public sectors in the United Kingdom exceeded £15 billion in 1992. In companies this represented a national average of 1.5% of turnover; in the public sector IT spend exceeded 1% of total public expenditure. All commentators predict a general rising trend for the 1993–95 period (KEW Associates, 1992; Price Waterhouse, 1992; Willcocks, 1992). Furthermore, it is likely that these figures only partially take into account rising costs on IT contained in non-IT budgets. This may represent anything between 20 and 40% in additional expenditure, depending on the organization (see Introduction, page 8).