IT Report: Total Worldwide Information Technology Spending to Exceed $1.1 Trillion by 2001 - Industry Trend or Event

Edge: Work-Group Computing Report, Feb 15, 1999

Computer Economics projects that the total worldwide expenses for information technology will exceed $1.1 trillion by 2001. This represents an anticipated increase in IT spending of approximately $140 billion over the next two years. Computer Economics estimates that spending will increase steadily in all IT-related areas. The IT budget items consuming the largest portion of resources in 2001 will be hardware and staffing.

     Total Worldwide IT Spending Projections for 2001

     Area                                $ billion
     Consumable Supplies                 37.9
     Facilities Overhead                 48.1
     Staff                               341.6
     Outside Services                    73.1
     Software                            126.0
     Hardware                            496.5

"The rate of growth in IT spending that we are projecting through 2001 will continue for at least the next five," said Computer Economics' Director of Research and Advisory Services, Michael Erbschloe. "Expect to see significant increases in spending from Europe and Asia, while the U.S. continues on at a strong pace." Further projections for worldwide IT spending and breakdowns by specific product markets can be found in the Computer Economics analysis, 1999-2001 Worldwide IT Spending Forecast. Computer Economics is an independent research firm specializing in helping IT decision makers plan, manage, and control IT costs through advisory services, analyst support, an innovative Web site, and printed reports. Based in Carlsbad, Calif., Computer Economics serves 82 percent of the Fortune 500. FMI: http://www.computereconomics.com.