October 2, 2006

European Enterprise IT Spending: 2006 To 2007

Looking Up, But Still Lagging Behind The US

by Andrew Bartels, Andrew Parker

with Ellen Daley, Katherine Brown, Heidi Lo

Executive Summary (This is a document excerpt)

While the collective GDP of Western and Central European countries is greater than that of the US, Forrester estimates that total European IT spending on computer and communications equipment, software, IT services and outsourcing, and IT staff is still lower than US IT spending — $565 billion in 2006 (€448 billion) for Europe, versus $721 billion in the US. On the other hand, growth in European IT spending is starting to match or exceed US IT spending. In US dollars, European IT spending will grow by 5.1% in 2006 — almost as high as the US growth of 5.8% — before slowing to 3.7% in 2007 in parallel with the US IT spending slowdown to 2.9%. Expressed in Euros, European IT spending growth will be 3.8% in 2006, as the Euro rises against the dollar in 2006. However, Euro-denominated IT spending growth in 2007 will be 3.7% — only slightly lower than the 2006 growth rate, and stronger than US IT spending growth in 2007. New investment in computer equipment, communications equipment, and software will grow by 4.5% in 2007 after 2.1% growth in 2006 due to cautious European CIO spending plans.

Buy Risk-Free

Download and print PDF immediately. Price: US $1749

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.