| | Organisations with more
than $1bn in revenue
have re-forecast their
IT spending increase for
2007 to 2.8%, according
to a new Gartner
Consulting Worldwide IT
Benchmark Report.
These spending
projections are down
from research collected
by Gartner during the
first half of 2006. At
that time, IT spending
for 2007 was forecast to
grow at 6%.
“A number of factors
have combined to force | |
|
| | enterprises to lower
their IT spending
forecasts from the first
half of 2006,” said Jed
Rubin, director, Gartner
Consulting. “Looking
back at the distribution
of spending in 2006,
enterprises spent more
to support core business
operations. This
includes spending to
support increasingly
complex infrastructure
and applications
requirements, rising
energy costs, regulatory
requirements and other | |
|
| | non-discretionary
spending to keep the
business running. This
increased ‘run the
business’ spending has
consumed budget
resources that were
originally earmarked for
more strategic and
transformational
investment. IT leaders
are now planning to
optimise their spending
in these areas in the
year to come.”
According to the
research, growth and
transformation remain | |
|
| | the top priorities for
enterprises in 2007, but
any new investments need
to be funded by a
significant reduction in
existing
‘run-the-business’
spending. To support
these priorities, IT
organisations will
subsequently need to
reduce their ‘run the
business’ budgets by
nearly 5% in 2007.
The research shows
that IT spending
forecasts differ by
industry. In 2007, the | |
|
| | most significant
difference in IT
spending growth will be
in the media industry,
up to nearly 7% from 4%
in 2006. The consumer
products industry will
see the biggest decline
in IT spending in 2007,
as spending is expected
to decline by nearly 6%,
down from an 8% increase
in 2006.
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