U.S. organizations' IT spending will increase 5.5% in 2006, says Gartner Inc. in Stamford, Conn. The biggest spenders: businesses with 20 to 99 employees, which plan to boost budgets 7%. In organizations with 500 to 999 employees, IT spending will rise 2.4%. Gartner cites the following priorities:

  • Software gets the biggest boost, with 3% increases over last year.


  • Budgets for application development tools will grow by more than 40%.


  • Managers will increase application integration and middleware software expenditures by more than 35%.
    •

While indicative of a recovery in IT spending, the overall increase is more modest than it appears, Gartner cautions. In many cases, projected revenue growth will outstrip growth in IT budgets. So while IT spending will rise in dollars, when measured as a percentage of revenue, some IT budgets will actually decline.

Linda Tucci is senior news writer for SearchCIO.com. Write to her at ltucci@techtarget.com.

This was first published in December 2005

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