A Break in the Clouds

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Ever have one of those dark days where you need another piece of bad news like you need the proverbial hole in the head? What am I saying? You’re in IT, so of course you have. Well, here’s some good news. In fact, if you have a chart in your home office that tracks the recovery of the IT industry, be prepared for another upward trend. (By the way, if you have a chart like this in your office, we really should talk. There is help available.)

A recent study has shown that IT budgets have grown this year, and you can expect more growth in 2007. Because IT professionals depend on budgetary growth to pay salaries and buy the services, software and equipment they support, this is good news indeed.

The Datamonitor report, released in July, was compiled from interviews with 200 IT decision-makers in the United States and Western Europe. Although not all the news was good, the bad wasn’t quite overpowering. Some days in IT, that’s enough.




  • According to the survey, 43 percent expect budget increases in 2007, up from 32 percent whose numbers climbed this year.
  • Only 17 percent expect a decrease next year, compared to 21 percent that saw cuts this year.
  • The United States is leading the new IT industry. Altogether, 72 percent of U.S. companies expect increased IT spending next year.
  • According to the report, software spending and IT services are seeing growth, as is consulting services. Hardware spending, however, is likely to drop a bit.


How do these numbers relate to your own IT career? I’m sure those of you in large IT departments still have to be aware of the threats from outside, but entrepreneurs might see an expanding market. Consider this quote, from Tim Gower, Datamonitor’s lead analyst for technology trends: “Although the in-house IT department remains the primary port of call, enterprises are spending close to three quarters of their IT budgets with third parties. Solutions that help enterprises cut costs, enhance efficiencies and achieve or maintain regulatory compliance will generate the most interest.”

Maybe you’d have to call this “qualified good news” or “potentially pleasing,” but at least things are continuing to look stronger for IT experts. Each new report offers a thread of optimism, and from that we can knit together a stronger industry fabric.

Tim Sosbe
Editorial Director

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