The relationship between IT spending and corporate revenue

The large and continually increasing capital expenditures that firms continue to make in computers and communication systems, coupled with the growing dependence that corporations across virtually all industries have on their IT investment, suggests that executives know what returns they are getting from their spending. In reality, they do not. Moreover, there is a visible controversy in the field which suggests that the return on information technology spending may not be favorable. To gain greater insight into this issue, an analysis was performed to examine the three-year IT spending of a sample of Fortune 500/Service 500 firms. The results of the study show that there is a highly significant positive relation between IT spending and corporate revenue. These findings raise a series of questions meriting additional research