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November 19, 2004 North American IT Spending In 2005Seven Percent US Increase Means More Of The Same So-So Growthwith Tom Pohlmann, Natalie Lambert, Ryan Hudson |
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Executive Summary
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.
TABLE OF CONTENTS
- 2005 IT Spending Will Grow By 7% In US
- Canadian IT Spending Will Grow By 4% In Canadian Dollars
- 2004 IT Investment Will Slow Down In The Second Half, As Expected
- 2005 IT Spending By Industry
RECOMMENDATIONS
- Best Of Worlds Continues For IT Buyers
WHAT IT MEANS
- The Period Of Tech Digestion Is Still Running Its Course
ALTERNATIVE VIEW
- The Risk Of Lower IT Spending Exceeds Upside Potential
- Supplemental Material
- Related Research Documents
Features
Forecast: US IT Spending, 2004 To 2005
Forecast: US Software Spending By Type Of Software, 2004 To 2005
Forecast: North American Technology Services By Category, 2004 To 2005
Forecast: US IT Staffing Costs, 2004 To 2005
Forecast: Canadian IT Spending, 2004 To 2005
Forecast: IT Spending By Industry As Percentage Of Revenues, 2004 To 2005
Forecast: US IT Spending Growth By Industry, 2004 To 2005
This is an excerpt
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