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IT spending up in 2006

Posted: 06 Jan 2006 ?? ?Print Version ?Bookmark and Share

Keywords:IT? information technology? International Data? idc? Gartner?

After flat growth in 2005, IT spending is projected to rebound in 2006, according to separate forecasts from International Data Corp. (IDC) and Gartner Inc.

IDC projects that IT spending in the United States alone will jump 5 percent in 2006 over 2005. "Users were down on the future right after Katrina, and it showed in our surveys," said John Gantz, IDC's chief research officer, in a statement. "Then last month they more than doubled their spending outlook when users realized the economy was still perking along. This month they came back to earth. Small business executives were especially realistic."

Following a period of cost cutting and reactive spending, organizations with more than $1 billion in revenue will be cautious when making their IT spending decisions in 2006, according to Gartner.

In 2006, the most significant difference in spending will be in the consumer products industry, with IT spending increasing 7.9 percent in 2006, up from flat growth in 2005.

Although IT spending in the electronics and insurance industries is expected to be 7.8 percent and 6.5 percent, respectively, this actually represents a decline from 2005, when IT spending in those industries increased 8.3 percent and 7.7 percent, respectively.

The professional services industry will see the biggest decline in IT spending in 2006, as spending is expected to decline 1.7 percent, down from 10.1 percent in 2005.

EE Times

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