IT Spending to Jump in 2010?
Worried that your IT budget will tank? Well, if you're thinking only about the new year, then you're probably right. But it looks like there's hope for 2010. More hope, in fact, than the recovery from the last recession, according to IT research firm Computer Economics.
The firm's new forecast, released this morning, asserts that IT budgets will rebound faster this time around than they did from the 2000 recession. That's the good news. The bad news is, don't expect a new tech boom. "Our long-range forecast, however, does not anticipate a return to the 1990 boom years, when Internet and Y2K spending produced a bubble that distorted historical patterns," the report states. "Rather, we anticipate spending should rebound to the more modest rates of recent years."
(Click here for an executive summary.)
A few nuggets from the report:
- Hardware and software investments should grow 5 percent to 10 percent in 2010, assuming the recovery mirrors what happened in 2001.
- IT capital budgets should jump 4 percent to 5 percent--the growth level of 2006 and 2007--in 2010, boosted by lower interest rates and available credit.
- Up to about two-thirds of IT orgs should increase their IT spending in 2010, but only by 2 percent to 3 percent.
- Median IT operational spending should reach 1.8 percent in 2010 and could jump to 2 percent by 2010.
Check out CIOInsight.com in the coming weeks for more on how CIOs are grappling with the downturn. We've been chatting with some leading voices in the CIO community, and their advice is telling. You'll see more on that soon, as well as the findings from our own IT spending study. And we'll keep bringing more breaking news on the matter to Baselinemag.com.
In the meantime, tell us what you expect for 2009 and 2010. Are you seeing indications that your IT budget will suffer this year?