New Delhi, July 30: Spending on information technology by businesses is on the upswing driven by positive impact on productivity and return on investment (ROI), a survey by National Association of Software and Service Companies (Nasscom) has said. "IT spending by businesses stood at one per cent of their turnover. However, for almost 30 per cent of the organisations there is more than incremental increase in IT spending with an increase in their turnover," the Nasscom`s `User Industry Survey` said. According to the survey carried out among ten key industry verticals, as many as 66 per cent of the businesses surveyed have well documented IT policy, 18 per cent were in the process of documenting IT while only four per cent were in the process of planning such a policy.
"Around 36 per cent of the companies surveyed had a well defined and documented proof on ROI for implementing IT in processes while 56 per cent stated that they did not have documentation but ROI for implementing IT was apparent," a Nasscom release said. Of the businesses surveyed, 40 per cent said there has been considerable increase in productivity after deploying IT that has been defined and documented while 58 per cent stated that there has been a positive impact on productivity but it was difficult to quantify.

In terms of planning IT budgets, 84 per cent of the organisations that were surveyed stated that planning was an annual exercise while only two per cent stated that there was no formal process and budgets were prepared on a specific needs basis.