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 Back to 2006 Press Releases
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Gartner Consulting's Worldwide IT Benchmark Group Says Majority of Industries Will Cautiously Increase Worldwide IT Spending in 2006 |
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| Large Sized Enterprises in Most Industries Expect Single-Digit Increase in IT Spending |
STAMFORD, Conn., January 4, 2006 - 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, according to Gartner Consulting's Worldwide IT Benchmark Service.
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.
Gartner's Worldwide IT Benchmark Service and The Worldwide IT Benchmark report includes five volumes of comprehensive IT spending and performance data across 20 industries. This report highlights comprehensive IT spending plans of more than 1,500 companies with more than $1 billion in revenue, combined with historical spending and performance data on more than 10,000 companies worldwide. This allows companies to look at key cost and performance indicators by IT domain to gauge and manage organizational effectiveness and performance optimization.
"While we are seeing all organizations moving away from reactive IT spending and toward improved agility and long-term strategic support at a macro scale, there are a number of different trends that are specific to each industry, geography and organization size," said Howard Rubin, an associate with Gartner Consulting.
"No single measure or investment can help an organization support the growth and direction of its business, but organizations that develop ongoing strategic performance management programs that allow them to manage their performance and track their competitive environment will be first in managing business growth, strategy and operations effectively," said Mr. Rubin.
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)
About the Worldwide IT Benchmark Research
Gartner's Worldwide IT Benchmark Service is a real-time, comprehensive data resource designed to provide key cost and performance indicators by IT domain and focused high-level comparisons of companies. Gartner's Worldwide IT Benchmark Service surveys companies from more than 30 countries in more than 20 industry sectors. Please click here for more information on Worldwide IT Benchmark Research.
CONTACT:
Christy Pettey
Gartner
(408) 468-8312
christy.pettey@gartner.com
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About Gartner:
Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for its clients to make the right decisions, every day. Gartner serves 10,000 organizations, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,900 associates, including 1,200 research analysts and consultants in 75 countries worldwide. For more information, visit www.gartner.com.
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