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Gartner says majority of industries will cautiously increase IT spending this year

Following a period of cost cutting and reactive spending, organizations with more than US$1 billion in revenue will...


January 4, 2006  


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

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

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

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

Gartner’s Worldwide IT Benchmark Service and The Worldwide IT Benchmark report highlights comprehensive IT spending plans of more than 1,500 companies with more than $1 billion in revenue, combined with historical spending and performance data on more than 10,000 companies worldwide.

“While we are seeing all organizations moving away from reactive IT spending and toward improved agility and long-term strategic support at a macro scale, there are a number of different trends that are specific to each industry, geography and organization size,” said Howard Rubin, an associate with Gartner Consulting.

“No single measure or investment can help an organization support the growth and direction of its business, but organizations that develop ongoing strategic performance management programs that allow them to manage their performance and track their competitive environment will be first in managing business growth, strategy and operations effectively.”