IT Spending Growth to Slow

By Priya Ganapati
A research firm has lowered its forecast for IT spending growth as optimism hits 2005 low point.
August 1, 2005

Information technology spending is expected to grow by just 4.8 percent over the next 12 months, according to a lowered forecast by research firm IDC Monday, as optimism about future demand for IT services has hit a low point for the year. IDC’s forecast earlier this year had put growth at 5 percent, which would have pegged growth at the same rate as 2004.

But August marked the fifth consecutive month of flat or falling buyer intent as CIOs realize that IT budgets for the year are tighter than they had originally estimated. Earlier this year, IT buyers had expected IT budgets to rise as much as 10 percent to 15 percent over the next 12 months.

More at Red Herring online