New Year Prediction: IT Spending Will Grow. Uh, No It Won't - InformationWeek

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12/31/2007
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New Year Prediction: IT Spending Will Grow. Uh, No It Won't

First we're told that IT spending will be pretty healthy in the coming year. Then we're told that the researchers have changed their mind. What gives?

First we're told that IT spending will be pretty healthy in the coming year. Then we're told that the researchers have changed their mind. What gives?Ars Technica reports that AMR Research's initial prediction from surveys it took two months ago that IT spending would increase by 8 percent next year wasn't entirely accurate. "It seems that since AMR Research polled 495 business unit executives and IT managers for the survey in late October, the research firm has since had second thoughts about being quite so bullish, trimming back its estimate for IT spending growth to a more modest 5 to 6 percent," writes Ars Technica.

Forrester Research also revised its predictions for IT spending, downward. According to PC World, "Forrester said it expects U.S. IT investment growth to slow slightly to 4.8 percent in 2008 from 5.3 percent in 2007. Previously, the research firm had predicted U.S. IT spending growth would be about 8 percent in 2008, led by software and network equipment."

Ars Technica quotes Bob Kraus, vice president of quantitative research at AMR Research in Boston and author of the report, who said: "We think it's safe to knock 2 to 3 percent off the growth estimate for IT spending next year." The reason? "Although the markets were still doing very well in October, a month or so later we think it's likely we will see different results."

And who knows what will be in yet another month?

As we ring in the New Year, we'll hear a lot of predictions but the key for any IT manager of a small to midsize business is the same as it always was: spending their IT dollars wisely so that IT can do what it is supposed to do  that is, help the company innovate, grow, and be successful. As we enter the New Year, here's hoping that happens for you.

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