Most Companies Planning to Spent More on eCommerce According To Forrester Research

Three-Fourths Of Surveyed Companies Will Maintain Or Increase eCommerce Investments

Cambridge, Mass., January 5, 2004 - Despite the dot-com bust, Forrester Research, Inc. (Nasdaq: FORR) finds that IT investments in eCommerce are alive and well. New research from Forrester estimates that eCommerce budgets will outpace the rest of IT budgets, with about three-fourths of companies maintaining or increasing their investments in eCommerce initiatives. Spending on sell-side (customer-facing) eCommerce initiatives will grow by 4.8 percent, and buy-side (supplier-facing) spending will be more in line with overall IT budgets, growing at 1.9 percent.

Forrester's survey of 212 eCommerce decision-makers with either a sell- or buy-side technology role reveals that customer-facing initiatives will see the largest growth, with 40 percent of companies increasing their spending, while 28 percent of companies will increase their spending in supplier-facing initiatives.

Additional Key Findings

· Spending on Web-based apps and full-time development staff will lead the charge.
· Improving user experience -- improved usability, enhanced self-service, and driving customers to use online channels -- will be a key theme.
· Security will top the list of planned technology purchases for eCommerce activities.
· Unlike the market for IT consulting services overall, eCommerce consulting and implementation services are also expected to grow.

To learn more about this research, please read Forrester's Business Technographics® "2004 Outlook For eCommerce Tech Spending" Data Overview.

The research mentioned in this press release is available to Forrester WholeView™ clients and can be found through www.forrester.com.

Forrester is an independent technology research company that provides pragmatic and forward-thinking advice about technology's impact on business. Business, marketing, and IT professionals worldwide collaborate with Forrester to align their technology investments with their business goals. Forrester offers products and services in four major areas: Research, Data, Consulting, and Community. In February 2003, Forrester acquired Giga Information Group. Established in 1983, Forrester is headquartered in Cambridge, Mass. For additional information, visit www.forrester.com.