June 03, 2003, 1:33 PM — Companies will spend slightly more on IT services in 2003 than last year, an increase prompted in part by the purchasing of outsourcing services that help companies reduce costs and improve their IT infrastructure, according to a Gartner Inc. study released Tuesday.
Spending on IT services worldwide is expected to reach US$555 billion in 2003, up 3.5 percent from 2002, Gartner said.
The expected increase also represents a turnaround for the market, which shrunk less than 1 percent in 2002 compared with 2001, to $536 billion from $540 billion, Gartner said.
IT budgets are expected to increase next year, as companies improve their financial outlooks and feel the need to invest in IT to remain competitive, Gartner said. Consequently, Gartner forecasts IT services spending to grow 5.2 percent in 2004 to $584 billion.