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July 10, 2007 US IT Spending Update: Q2 2007The Downturn Looks Like It's Over; IT Staff Spending Is On The Risewith Bradford J. Holmes, Heidi Lo |
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Executive Summary
As expected, the Q1 2007 IT investment and purchases data showed a distinct slowdown in growth from the first half of 2006. However, the weakness was not as pronounced as in the fourth quarter of 2006, indicating that the worst of the slump has already happened. Growth in the second quarter of 2007 should show signs of improvement when the data starts to come in during July and August, and IT purchases should strengthen in the second half of the year. Software continues to be the bright spot in the US tech market, with 7% to 8% growth rates. Computer equipment investment, which took a hit in late 2006, is starting to improve, but communications equipment investment is headed in the other direction. Another bright spot has been the IT jobs category, which grew more strongly than expected in 2006, with a comparable year in prospect in 2007. Demand is strongest for database administrators, network and computer systems administrators, network systems and data communications analysts, and computer research scientists. Salary growth still remains moderate, though, at around 3%.
TABLE OF CONTENTS
- The Tech Slowdown Of Late 2006 Continued Into The First Quarter Of 2007
- Forecast For US IT Investment: 5% In 2007 After 6% Growth In 2006
- Forecast For US IT Spending: 6% In 2007 And 7% In 2008, After 6% Growth In 2006
- IT Jobs And Salaries Showed Better Growth In 2006, With The Same Likely For 2007
RECOMMENDATIONS
- Prepare For Somewhat Better Times
WHAT IT MEANS
- The Tech Sector Will Come Out Of 2007 With Upward Momentum
ALTERNATIVE VIEW
- 2007 IT Spending Is Lower Because The Economy Weakens
- Supplemental Material
- Related Research Documents
Features
US Government Data Shows 4% Q1 2007 Growth For IT Goods Business Investment
Vendor Data Shows 4% Growth In US IT Revenues In Q1 2007
The Expected Economic Slowdown Has In Fact Already Happened
Forecast: US IT Investment And Vendor Revenues Will Slow In 2007, But Mostly In Q1
Forecast: US IT Spending, 2007 To 2008
Forecast: US IT Staff Spending, 2007 To 2008
Forecast: US IT Department Staff Growth By Occupation, 2007 To 2008
Forecast: US IT Department Staff Mean Salary By Occupation, 2007 To 2008
This is an excerpt
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