SNAPSHOT INSIDE COMPANIES Average portion of revenue spent on IT 2% Average percentage of industry applications and business processes that have Web-based front ends 34% Companies with real-time business processes in place 62% HOW COMPANIES DIVIDE THEIR I.T. BUDGETS Hardware purchases 19% Services or outsourcing 8% Research and development 4% Salaries and benefits 37% Applications 21% Everything else 11% INDUSTRY FINANCIALS Average year-over-year revenue change -9% Average year-over-year net income change -131% DATA: INFORMATIONWEEK RESEARCH IN A NUTSHELL INSIDE COMPANIES Average portion of revenue spent on IT 1% Companies providing customized solutions to customers 50% Companies seeking IT patents, trademarks, or copyrights 24% HOW COMPANIES DIVIDE THEIR I.T. BUDGETS Hardware purchases 21% Services or outsourcing 12% Research and development 3% Salaries and benefits 35% Applications 19% Everything else 10% INDUSTRY FINANCIALS Average year-over-year revenue change -4.4% Average year-over-year net income change -59.3% DATA: InformationWeek research See the InformationWeek 500 2002 and 2001 comparison Return to main story: Distributors Look To 'Crystal Balls'