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BizReport : Research archives : January 16, 2007

IT Spend to Hit $1.5 Trillion

Don't look for information technology spending to slow down any time soon. According to new research from IDC, the IT spend will jump to $1.5 trillion over the next four years.

by Kristina Knight

IDC reports that end-users spent just over $1 trillion in 2006, making the growth rate for IT spending 6.3% over the next four years. That is not a huge growth rate, but it does indicate a change in buying habits. Software, hardware and services are the main components in the growth rate.

Hardware will lead the way by rebounding from spending shortfalls over the next few years. The IT hardware spend is expected to raise to $562 billion in 2010. The IDC report indicates volume servers and networking equipment will lead the way in the business world, but hardware will see the most growth from home users. Spending is expected to do very well in the home business, consumer and government sectors.

The software spend will reach $327 billion, a growth of 7.7%. Boosting software sales will be manufacturing and service industries as well as the government. Health care, communications and government are expected to see the most growth through 2010.

IT services will account for about $587 billion in 2010, according to the report. That is a 5.8% growth rate. Government, banking and discrete manufacturing will lead the way in this category.

Tags: information technology spending

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