Will Cautiously Increase Worldwide IT Spending in 2006

Gartner: Large Sized Enterprises in Most Industries Expect Single-Digit Increase in IT Spending , Following a period of cost cutting and reactive spending, organizations with more than $1 billion in revenue will be cautious when making their IT spending decisions in 2006 In 2006, the most significant difference in spending will be in the consumer products industry, with IT spending increasing 7.9 percent in 2006, up from flat growth in 2005 (see Table 1). Although IT spending in the electronics and insurance industries is expected to be 7.8 percent and 6.5 percent, respectively, this actually represents a decline from 2005, when IT spending in those industries increased 8.3 percent and 7.7 percent respectively. The professional services industry will see the biggest decline in IT spending in 2006, as spending is expected to decline 1.7 percent, down from 10.1 percent in 2005. Table 1 IT Spending Change by Industry for Organizations With More Than $1 Billion in Revenue, 2005 and 2006

Industry	Spending Change (%) - 2004-2005	Spending Change (%) - 2005-2006
Consumer Products	0.0	7.9
Electronics	8.3	7.8
Insurance	7.7	6.5
Chemicals	-0.2	5.1
Construction and Engineering	0.0	4.9
Information Technology	2.3	4.7
Healthcare	8.9	4.6
Education	6.0	4.1
Energy	-2.9	3.9
Pharmaceuticals	5.6	3.3
Utilities	-0.6	3.1
Banking and Financial Services	7.1	3.1
Media	2.8	2.9
Government	5.0	2.4
Food/Beverage Processing	6.0	1.3
Manufacturing	-1.3	1.2
Telecommunications	0.2	0.0
Metals/Natural Resources	0.8	0.0
Hospitality and Travel	0.0	0.0
Transportation	-1.4	-0.2
Professional Services	10.1	-1.7
Retail	-0.1	-4.9

Note: Represents organizations with greater than $1 billion annual revenue. Source: Gartner Consulting (December 2005) More: Worldwide IT Benchmark Research Publ 20060104