Enterprise IT Spending to Grow by 6% in 2013
Over the last quarter, the U.S economic outlook has been clouded with uncertainties surrounding the fiscal cliff, contracting G.D.P growth, and declining international trade owing to reduced economic activity in the Euro zone. But the horizon looks a little brighter, and IDC expects the U.S. economy to stabilize in the second half of 2013, and this will lead to moderately strong IT spending growth. According to IDC’s United States Black Book: State IT Spending by Vertical Market, total IT spending on hardware, software and IT services across all 15 enterprise industries is forecasted to grow by 6 percent in 2013 to approximately $474 billion.
"Global uncertainty has subdued the willingness of firms to expand their IT budgets," said Ted Dangson, vice president in IDC’s Global Technology and Industry Research Organization (GTIRO). "Yet, we’ve seen continued investments by companies as they prioritize the replacement of outdated technology, and pursue strategic IT initiatives focused on big data and analytics, cloud computing, and mobility."
Manufacturing will account for almost a quarter of all enterprise IT spending in the United States in 2013, according to Dangson. Process manufacturing is expected to grow at a slightly above average rate of 6.3 percent in 2013. Discrete manufacturing growth will be in line with overall enterprise growth, at 5.95 percent. And manufacturers are expected to materially increase their spending on enterprise software applications at 7.4 percent growth over 2012 spending levels.
Total IT spending by enterprises in Arizona, North Dakota, Utah and Texas is expected to grow at the highest rates in the country over the next year at more than 7 percent across all industries.
"This growth is being driven by a high percentage of healthcare, manufacturing, and professional services businesses in these states, and IT spending aligns with economic projections of employment growth in these industries," says Natasha Menon, research analyst in GTIRO.
Specific industries expected to grow at above-average rates for the coming year include healthcare, which is forecast to grow by more than 8 percent in 2013, due in part to the need to process and analyze increasing volumes of data from new clinical systems such as EHR. The professional services industry is also expected to grow more than 8 percent; a high correlation between overall corporate profitability and IT spending by professional services firms suggests robust spending within this industry as corporate profits are forecasted to improve.
IDC's United States Black Book: State IT Spending by Vertical Market is a quarterly analysis of the status and projected growth of the IT industry in 50 states, segmented by 15 vertical markets as well as 15 technologies across hardware, software and services. The quarterly releases are provided as Microsoft Excel pivot tables that allow for customized views of the data. The current release offers IT spending forecasts for the 2011-2016 period.
The data is based on IDC's Worldwide Black Book, which provides forecasts for IT spending in 54 countries around the world. IT spending forecasts focus on 25 individual market segments across hardware, software, IT services, and telecom services. Additional products in this category include the Worldwide Enterprise Black Book, which analyzes annual IT spending in relation to four company size segments based on employee counts. The Worldwide Black Book, Premium Edition, includes cloud spending forecasts, quarterly IT spending forecasts by region, IT vendor market share analysis, macroeconomic indicators, IT/Internet penetration and CIO survey data.
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"Global uncertainty has subdued the willingness of firms to expand their IT budgets," said Ted Dangson, vice president in IDC’s Global Technology and Industry Research Organization (GTIRO). "Yet, we’ve seen continued investments by companies as they prioritize the replacement of outdated technology, and pursue strategic IT initiatives focused on big data and analytics, cloud computing, and mobility."
Manufacturing will account for almost a quarter of all enterprise IT spending in the United States in 2013, according to Dangson. Process manufacturing is expected to grow at a slightly above average rate of 6.3 percent in 2013. Discrete manufacturing growth will be in line with overall enterprise growth, at 5.95 percent. And manufacturers are expected to materially increase their spending on enterprise software applications at 7.4 percent growth over 2012 spending levels.
Total IT spending by enterprises in Arizona, North Dakota, Utah and Texas is expected to grow at the highest rates in the country over the next year at more than 7 percent across all industries.
"This growth is being driven by a high percentage of healthcare, manufacturing, and professional services businesses in these states, and IT spending aligns with economic projections of employment growth in these industries," says Natasha Menon, research analyst in GTIRO.
Specific industries expected to grow at above-average rates for the coming year include healthcare, which is forecast to grow by more than 8 percent in 2013, due in part to the need to process and analyze increasing volumes of data from new clinical systems such as EHR. The professional services industry is also expected to grow more than 8 percent; a high correlation between overall corporate profitability and IT spending by professional services firms suggests robust spending within this industry as corporate profits are forecasted to improve.
IDC's United States Black Book: State IT Spending by Vertical Market is a quarterly analysis of the status and projected growth of the IT industry in 50 states, segmented by 15 vertical markets as well as 15 technologies across hardware, software and services. The quarterly releases are provided as Microsoft Excel pivot tables that allow for customized views of the data. The current release offers IT spending forecasts for the 2011-2016 period.
The data is based on IDC's Worldwide Black Book, which provides forecasts for IT spending in 54 countries around the world. IT spending forecasts focus on 25 individual market segments across hardware, software, IT services, and telecom services. Additional products in this category include the Worldwide Enterprise Black Book, which analyzes annual IT spending in relation to four company size segments based on employee counts. The Worldwide Black Book, Premium Edition, includes cloud spending forecasts, quarterly IT spending forecasts by region, IT vendor market share analysis, macroeconomic indicators, IT/Internet penetration and CIO survey data.
Related Articles:
2012 Tech Trends Report
P&G Initiates Strategic BI Partnership
Kimberly-Clark Announces New CIO
Century Place Upgrades ERP System