Gartner Reports IT Spending Strengthening
Analyst firm Gartner has reported that increasing spending on technology is a sign of a turnaround in IT demand. Early signs show that IT spending is likely to get stronger during the second half of this year, which means it is likely that there will be a turnaround in IT spending for 2004, according to Gartner’s Technology Demand Index.
The weekly poll drawn from the 20,000-member panel of IT decision makers at small, medium and large business showed that U.S. businesses spent less than their budgeted levels in the month of July. The resulting score of 95.1 on the Gartner Technology Demand Index shows that IT demand is returning to budgeted spending levels. A score of 100 would indicate that businesses spent exactly what they budgeted for the month. David Hankin, senior vice president and general manager of Gartner, said that while the data is still reflecting a conservative market that is trying to control costs, the overall trend leads to more optimistic predictions that spending will get back to budgeted levels or even higher by the fourth quarter of 2003.
Software spending was the big winner in July, the only category where spending went above budgeted amounts. With a score of 107.3 on the Technology Demand Index, software spending is fairly strong for July, compared to other categories. Hankin said that this demand falls in design and engineering because of growing interest in new standards, including Java 2 Enterprise Edition (J2EE), .NET and Web services.
IT services spending came in after software spending, scoring 95.5 on the index. The lowest scorers were hardware, and networking and telecommunications, which made it to a score of just under 90.
For more information, see http://www.gartner.com.
Emily Hollis is associate editor for Certification Magazine. She can be reached at firstname.lastname@example.org.