February 3, 2006

North America's 2006 Enterprise IT Spending Outlook

Business Technographics North America

by Michael Speyer

with G. Oliver Young, Tom Pohlmann, Katherine Brown

Executive Summary (This is a document excerpt)

The outlook for IT spending in 2006 looks more cautious than it did in 2005. Enterprises expect to increase their IT budgets by 3.2%, which is down from a 3.9% planned increase at this time in 2005. This softening will have a negative impact on new investments, as well as on IT R&D spending. However, while spending on these potential drivers of innovation will decrease, IT executives cite increased pressure to provide tangible business value and support growth. For 2006, IT shops plan to spend the majority of their efforts in securing the infrastructure, preparing for disaster, complying with government regulations, and replacing outdated systems. To do so, they will attempt to control services spend and will turn to large vendors for efficient, cost-effective solutions.

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