Ten-Year Trends in IT Spending and Outlook for 2006

February, 2006


This article examines long-term trends in IT spending, based on Computer Economics surveys of several thousand CIOs and senior IT managers in North America over the past 10 years. The long term trend for three key IT spending metrics are documented: IT budget as a percent of revenues, IT spending per employee, and the percentage change of IT budgets year over year. Bottom line: the post-Y2K bust and dot-com collapse in IT spending are now behind us, and IT spending ratios have returned to their long term trend lines. We use these trends to forecast these statistics for the coming year.