November 19, 2004

North American IT Spending In 2005

Seven Percent US Increase Means More Of The Same So-So Growth

by Andrew Bartels

with Tom Pohlmann, Natalie Lambert, Ryan Hudson

Executive Summary (This is a document excerpt)

North American IT spending in 2005 will continue the modest growth experienced in 2004, with US IT spending growing by 7% and Canadian IT spending growing by 4%. For IT buyers, these forecasts may seem high compared with their spending intentions, which show lower growth in budgets. Meanwhile, the growth will disappoint IT vendors accustomed to the revenues they saw in 2004. What links the two divergent perspectives is that new capital investment in computers and communications equipment will drop in 2005 from the torrid growth in 2004, while budgeted spending on these categories will rise as depreciation expenses from this year's and this past year's investments hit income statements. Software spending, which has chugged along at a moderate 7% rate in 2004, will continue that growth in 2005. Spending on IT consulting and integration services will continue to grow more slowly, but spending on IT outsourcing will continue to rise at a more rapid rate, though with declining prices.

Buy Risk-Free

Download and print PDF immediately. Price: US $499

Our Money-Back Guarantee: If you are not completely satisfied, return it for a full refund within three weeks of your online purchase.

Already a Forrester Client?
Log in to read this document.