"While federal government spending on the defense sector will drive government technology expenditures, civilian and intelligence agency segments will also see real growth in technology spending during the next two years," said Rishi Sood, principal analyst for Gartner Dataquest's IT Services group. "Key issues that are increasing technology investments will include Homeland Security, outsourcing, and agency modernization projects. In contrast, state and local government will have a contraction in IT spending in 2003 as new governors reassess priorities in light of historic budget deficits."

Across the industry, healthcare organizations are investigating the benefits and costs of IT and business process outsourcing (BPO)," said Geraldine Cruz, senior analyst for Gartner Dataquest's IT Services group. "Despite the compelling drivers to IT spending, the healthcare industry's constrained ability to invest capital, and its difficulty embracing IT systems, will hinder new IT initiatives."

Financial services organizations are expected to spend cautiously in 2003 and then boost IT spending by 2004. "New clusters of spending in 2003 will include branch transformation and flexible infrastructure initiatives in securities and insurance," said Susan Cournoyer, senior analyst for Gartner Dataquest's IT Services group. "By 2004, BPO will surge, notably in insurance and investment banking."

Source: "Gartner Dataquest Says 14 Vertical Markets to Increase IT Spending in 2003," January 21, 2003

"Worldwide IT spending will climb slightly in 2002, with revenue totaling $2.3 trillion, a 3.4 percent increase from 2001, according to Dataquest Inc., a unit of Gartner, Inc. Both enterprises and vendors are looking for positive signs of a return to corporate spending, especially in the United States."

"'Our forecast shows that we are unlikely to see anything beyond normal seasonality before the second quarter of 2003,'" said George Shiffler, principal analyst for Gartner Dataquest's computing platforms and economics research. "'We expect the return to spending to begin with shorter-term less strategic items, such as PCs, low-end servers and infrastructure software that can help deliver more value out of systems and networks. However, the global economic situation is quite fluid and given the rising uncertainty surrounding the strength of global economic recovery, there are still significant downside risks to the industry.'"

Source : "Gartner Dataquest Says Worldwide IT Spending Is On Pace To Increase 3 Percent In 2002," October 7, 2002

"Computer hardware systems revenue in Asia/Pacific is projected to grow 3 percent in 2002 with revenue of $32.19 billion, up from $31.28 billion in 2001, according to Gartner Dataquest, a unit of Gartner, Inc."

"'There had been a lot of talk about an economic recovery, but that was not evident in the first quarter of 2002. We believe much of the growth will come in latter part of 2002,' said Jennifer Wu, principal analyst for Gartner Dataquest's Asia/Pacific Computing Platforms group."

"In 2002, PC end-user revenue is forecast to account for 74 percent of computer hardware revenue in Asia/Pacific. While server revenue is expected total $5 billion in 2002, a 5 percent decline from 2001, the market will rebound and reach $5.65 billion in 2006."

"Asia/Pacific hardware systems shipments are forecast to grow 10.6 percent in 2002 with overall shipments of 35.98 million units. In 2002, PC shipments will account for 60 percent of all hardware system shipments. Gartner Dataquest analysts said PC shipments will grow 10.6 percent in 2002, but this growth rate is lower than in previous years."

"Worldwide IT spending for the manufacturing vertical market is projected to total $326 billion in 2002, a 5.5 percent increase from 2001 spending of $309 billion, according to Dataquest Inc., a unit of Gartner, Inc."

"Although growth in IT spending in the manufacturing vertical industry will be modest for the year, it is a positive change from the 1.3 percent contraction witnessed in the preceding year. The manufacturing industry will continue to experience single-digit growth through 2005, when spending will surpass $407 billion."

"'The economic recession and the end of the e-business bubble have compelled manufacturing enterprises to severely curb year-over-year increases in their IT budgets. In fact, some manufacturing sectors, such as the automotive industry, will continue to reduce their IT budgets this year,' said Geraldine Cruz, senior analyst for Gartner Dataquest's IT services group."

Source: "Gartner Dataquest Forecasts IT Spending in Manufacturing Vertical Market to Increase 6 Percent in 2002," June 5, 2002

"Worldwide IT spending for the financial services industry is projected to total $350 billion in 2002, a 7.3 percent increase from 2001 spending of $326.1 billion, according to Dataquest Inc., a unit of Gartner, Inc. The financial services industry will continue to experience single-digit growth through 2005, when spending will surpass $474.4 billion."

"'The double-digit industry growth rates common in the 1990's are gone,' said Susan Cournoyer, senior analyst for Gartner Dataquest's IT services group. 'The slow transition from recession toward economic resurgence continues to put pressure on IT vendors to survive through lean times. In fact, 42 percent of financial services companies surveyed in late 2001 said that they plan to reduce the number of IT vendors they work with, compared to 22 percent of companies surveyed in 2000. Clearly the viability of the financial services practices of IT vendors is at stake.'"

"The combined pressures of economic recession, re-evaluation of CRM spending, and concerns about inadequate infrastructure put many IT investments on hold, even before Sept. 11. Investments in security in the aftermath of Sept. 11, and also in infrastructure and the optimization of investments in e-business and CRM, are driving the incremental recovery in IT spending."

Source: "Gartner Dataquest Says IT Spending in Financial Services Industry to Increase 7 Percent in 2002," May 30, 2002

"Gartner, Inc. and The Goldman Sachs Group, Inc. today released their IT Spending Confidence Survey, a leading indicator of technology spending levels and intent. The survey was conducted among 369 of the 1,800 attendees at Gartner Symposium/ITxpo in early May 2002."

"According to the survey, technology budgets owned and executed by IT departments for U.S. businesses will remain flat throughout the balance of 2002, with technology spending dropping by 0.4 percent. The results are in line with a previous Gartner IT spending survey conducted in the fall that reported an anticipated 1.5 percent rise in technology spending for the balance of 2002."

"Despite the weak sentiment demonstrated in this survey, Gartner analysts expect that fourth quarter capital spending activities will rise and the total technology spending for 2002 will likely result in a 1.5 percent increase."

"Eighty-nine percent of respondents anticipate a modest recovery for the world economy by the end of 2002, but that is not influencing their spending intentions for the balance of the year. The spending obstinacy is reflected by 78 percent of respondents saying that they would not change their technology spending intent regardless of immediate changes in the broader economy."

"The Gartner and Goldman Sachs survey revealed that massive price-cutting among technology vendors has slowed, but pricing pressure is still present. When asked if the buyer’s ability to command favorable pricing terms with vendors has increased, decreased or remained the same, 50 percent of respondents reported that the ability has increased, 41 percent said it has remained the same, and only 9 percent consider their influence on lowering costs decreasing."

Source: "Gartner and Goldman Sachs U.S. IT Spending Confidence Survey Indicates Weak Sentiment and Flat Spending Through 2002," May 22, 2002