IT Spending Up 7% For Next 12 Months

It seems that all is aligned in the IT world. According to IDC's report entitled "FutureScan", IT executives expect spending to rise 7.5% in the next 12 months. At the same time Wall Street is forecasting vendor revenue growth of 7.5%.

"More important than this temporary alignment is the fact that the indicators are going in the same direction and have been doing so for several months," said John Gantz, Framingham, Mass.-based IDC's chief research officer. "The Katrina period seems to have been the low point and we interpret the trend as the slow accommodation to the reality of higher oil prices. We also like seeing user expectations in line with vendor revenue forecasts."

The IDC forecast for U.S. IT spending, released on April 28, is for 5.8% growth in 2006. IDC bases its forecast on inputs from IT supplier capacity and technology breakthroughs to channel and pricing dynamics, demographics, regulatory change and other market forces.

FutureScan results can be viewed at

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