As the recession lifts, a recent report found more than half of 200 surveyed IT leaders intend to increase spending on tools to improve productivity rather than focus on cost-cutting initiatives.

Although 60 percent of IT leaders said the economic situation has left them with frozen budgets, many still plan to invest their resources to increase productivity. Nearly 20 percent of respondents said they were optimistic about future spending and have added to their IT budgets.

Fifty-two percent of respondents said they are likely to increase their use of managed services, such as SaaS and other cloud applications, as a way to reduce capital expenditures and total cost of ownership. Many companies have outsourced their software needs to cloud computing providers to make their businesses leaner and more efficient.

Instead of using IT personnel to run data centers and to fix software issues that may arise with on-premise desktop applications, adopting cloud services has allowed companies’ IT staffs to focus on more pressing business needs.

A recent report from Forrester Research revealed U.S. IT products and services will grow by 9.9 percent in 2010, reaching $564 billion. In comparison, worldwide IT products and services will only achieve 7.7 percent growth.ADNFCR-2553-ID-19910063-ADNFCR