US Tech Market Growth Remains Solid For 2014 And 2015

So far, 2014 is turning out to be a relatively normal year for the US tech market, with growth in the 5% to 6% range. Unlike past years, we have not had to ratchet down our spring forecast due to economic shocks, despite a weather-related drop in US real GDP in the first quarter. CIOs can plan for continued increases of the same magnitude in their 2015 tech budgets. Of course, spending is occurring outside of the CIO's control, as functions outside of tech management use their own funds to procure specialized technology and services. Whether it's within the formal tech budget or not, CIOs should push for or support 8% to 10% growth in spending on technologies that enable the business technology (BT) agenda of winning, serving, and retaining customers. But CIOs should also be looking for savings in the traditional IT technologies of back-office, infrastructure, and employee productivity systems. With demand weak in those areas, CIOs will be able to negotiate discounts in new or replacement hardware and licensed software.