IDC says tech spending will grow by 6% this year, the same rate as 2012

Sequester, fiscal cliff and ongoing problems in Europe seen keeping growth rate flat

By , Computerworld |  Government

IDC is predicting a growth rate of 6% in IT spending in the U.S. this year, an amount that's virtually unchanged from last year.

The market research firm blamed a number of economic uncertainties for this flat spending increase, including the the fiscal cliff, the potential for a GDP contraction and the ongoing problems in Europe.

The growth rate might be "slightly higher" if not for the sequester, but the IDC doesn't say how much higher because of other uncertainties, according to Natasha Menon, an analyst in IDC's Global Technology and Industry Research Organization.

The sequester, a series of automatic spending cuts to the federal budget, is cutting federal spending this year by $85 billion.

IDC projects that total IT spending on hardware, software and services will reach $474 billion this year.

Forrester Research is cutting its growth estimate for the year by 1% because of the sequester. What had been originally a projected 7.5% increase will now be in the range of 6.5%, the research firm said Friday.

IT spending is expected to be the strongest in Arizona, North Dakota, Utah and Texas, with rates at more than 7%, said IDC.

The growth in those states is being driven by a high percentage of healthcare, manufacturing, and professional services businesses in those states.

Read more about it industry in Computerworld's IT Industry Topic Center.


Originally published on Computerworld |  Click here to read the original story.
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