IT Predictions for 2005, Part One

Although growth in global IT spending in 2005 is projected to increase by a modest 6 percent, there will a great deal of action beneath the statistical surface in terms of corporate shake-ups. These were among the predictions in a compendium of future IT trends, which was released last month by global research firm IDC, compiled over the course of three weeks and included input provided by nearly 40 of the organization’s senior experts. “It’s really kind of a virtual brainstorm across IDC on a global level,” said IDC’s senior vice president of research Frank Gens.

IDC is projecting net growth of $60 billion in IT spending next year, bringing total worldwide expenditures to approximately $1 trillion (accounting for between 2 percent and 3 percent of the world’s economic activity). The report predicts that the strongest regions in terms of IT growth will be in the emerging economies in Central and Eastern Europe, and Southern and Eastern Asia. Increases in IT spending should be moderate but stable in Western Europe and North America, while Japan and Latin America are expected to struggle with IT growth.

The biggest driver of growth in 2005 probably will be application software, comprising roughly 10 percent of new IT spending, Gens said. However, he added that new and expanding IT products and services—such as radio frequency identification (RFID), wireless merchandise and infrastructure security software—would also be factors. “Security software will continue to be a very large driver of growth and investment next…



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