Top 10 U.S. States for IT Spending

Growth in IT business spending in these United States has been pretty robust during the past few years. However, not all states are created equal, as a new IDC ranking of the top U.S. states for IT expenditures shows. If you’re thinking about a career-related move sometime soon, you might want to read on.

According to IDC’s report, the top 10 states for IT spending among enterprises are:


1. California
2. New York
3. Texas
4. Illinois
5. Florida
6. Pennsylvania
7. Ohio
8. New Jersey
9. North Carolina
10. Georgia


Incidentally, this list is very similar to the top 10 U.S. states in terms of population. Most of these contain at least one major urban area, and all are economic powerhouses in their own right. (For example, if California was an independent country, its economy would be ranked in the top 10 internationally.) “The economy plays a significant role in IT spending, and not just at the state level, but for IT in general,” said Jessica Goepfert, IDC’s director of U.S. vertical industry research and co-author of the report. “If you look at some states that have been a bit slower to recover—like Illinois and Pennsylvania—you see that we expect slower-than-average IT spending growth as well.”


The study covered three areas: hardware, software and IT services. Of these, IT services represented the largest share of businesses’ spending on technology, accounting for nearly half of all IT expenditures in each state (with the exception of North Carolina, which has high IT services spending due to its robust banking industry). Goepfert said that the top 10 states don’t deviate much throughout the life of the forecast, but there is some “jockeying” for different positions. In fact, IDC estimates show that Georgia will actually surpass North Carolina in 2006. On the “bubble” of this list are states like Michigan, home to the U.S. automotive industry, and Massachusetts, which has a strong financial sector.


Notably absent from the list are Virginia and Maryland, which are ranked 13 and 22, respectively. To be sure, the federal government’s IT spending is substantial, but it was not gauged in this research. Still, government at all levels remains a factor in the analysis, even if it is an oblique one, Goepfert said. “The government and government incentives certainly do play a role in the business environment of any state. In New Jersey, for instance, there have been several government-incented deals to help stimulate the life sciences industry.”


For more information, see http://www.idc.com.

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