Worldwide spending on information technology hit $965 billion in 2004 and will grow at an average rate of 6% by 2008 to reach $1.2 trillion, a research report showed Monday. International Data Corp. said its new research also showed U.S. spending on technology will reach $416 billion in 2005, an increase of 5.8%, and will grow at a pace of 5.9% to reach $501 billion by 2008.
"These results indicate a positive outlook for the U.S. and worldwide IT market, particularly after 2005," IDC said in its report. "With an improving business environment and recent GDP gains, companies are loosening their restraints for information technology investments." Anne Lu of IDC said banking, manufacturing and government stand out as the largest IT buyers.
Meanwhile the report projected software sales worldwide would grow 7% this year to reach $213 billion, with the largest increases from government and services industries. The worldwide hardware market, IDC predicted, would see sales grow to $465 billion by 2008 "driven by the robust spending from consumer/household, communications and media, and government sectors."