Pharmaceutical Industry Leads In Revenue And IT Spending Growth

The pharmaceutical industry was the best at aligning IT with overall operational expense gains this year, and it registered the biggest jumps in both revenue (5.39%) and IT spending (11.18%), according to Meta Group's Worldwide IT Benchmark Report 2004. The hospitality and travel sector--hit hard in 2002 by fear of terrorism, business travel cutbacks, and fierce competition from low-cost startups--bit the bullet to take second place in 2003, increasing its IT spending by 10.63%.

But the big increases in tech spending next year, research firm Gartner predicts, will come from manufacturing and insurance companies, with jumps of 12.41% and 12%, respectively. Electronics, food and beverage, and metals and natural-resources companies will boost IT budgets by 8% or more, while health care, IT, and media companies will clock increases in the 5% to 6% range.

Overall, increases in IT spending will triple next year, Meta Group says, from an almost-flat 1.38% to 4.99%.