Wednesday, March 26, 2003

Colleges Expect to Increase Information-Technology Spending by 5 Percent By FLORENCE OLSEN American colleges and universities this year expect to spend more than $5.2-billion on information technology, an amount that reflects about a 5-percent increase over what they budgeted for academic- and administrative-technology expenses in the 2001-2 academic year. The figures come from an annual survey conducted by Market Data Retrieval. A report on the survey, which drew responses from 1,427 accredited two- and four-year colleges and universities, is titled "The College Technology Review, 2002-2003 Academic Year." The survey dealt with budgeted expenditures, not actual expenditures. Last year, Market Data Retrieval estimated a 14-percent increase in spending on information technology by colleges. After several years in which the information-technology expenses of administrative departments have matched or exceeded those of academic departments, the spending picture this year shows a "return to the historical pattern of academic departments outspending administrative departments," according to the report's authors. This year, academic-computing departments overall are expected to spend $2.86-billion, or 55 percent of the dollars allocated by colleges for spending on information technology, while administrative-computing departments will spend $2.36-billion, or 45 percent. The report on the survey says that hardware expenses, mainly for computers and campus networks, continue to consume the largest portion of college IT budgets. This year, colleges say they expect to spend $2.75-billion on computer and network hardware. For two-year colleges, the average budget for academic hardware has declined 6 percent, to $210,199, down from $222,729. But for four-year colleges, the average budget for academic hardware is up 8 percent, to $467,522 from $434,818. The report on the survey notes that four out of five colleges have narrowed their computer choices to a single brand as a way of simplifying ordering procedures and reducing maintenance and training costs. This year, 61 percent of the colleges surveyed also say they have wireless networks. The report's findings are consistent with another study of information-technology spending in higher education, the Cost of Supporting Technology Services project, which has found a 5.1-percent increase in colleges' 2002-3 budgets for information technology, according to Karen L. Leach, who is vice president for administration and finance at Hamilton College and one of the project's directors. The Costs survey is based on annual-budget data submitted by 105 colleges that award baccalaureate and master's degrees. The Market Data Retrieval survey, which was sent to 4,978 administrators in October 2002, had a response rate of 28 percent. Copies of the report on the survey cost $49 each and can be ordered by sending an e-mail message to Market Data Retrieval at mdrinfo@dnb.com, or by calling (800) 333-8802. COLLEGES' INFORMATION-TECHNOLOGY BUDGETS FOR 2002-3 College enrollment Average budget Under 2,500 $527,800 2,501 to 10,000 $1,103,900 10,001 to 25,000 $2,284,800 Over 25,000 $15,952,200 SOURCE: Market Data Retrieval Easy-to-print version E-mail this article

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