Total European IT Spending to Reach $565B vs. $721B in U.S. This Year

Total European IT spending on computer and communications equipment, software, IT services and outsourcing, and IT staff is estimated to reach $565 billion in 2006 (€448 billion) compared with $721 billion in the US, according to according to a forecast by Forrester Research. 

Total IT Spending

  2006 Spending
(US$ billions)
2006 
Growth
2007 
Growth
Europe $565 5.1% 3.7%
U.S. $721 5.8% 2.9%
Source: Forrester Research (October 2006)
Western and Central European countries collectively account for more GDP than the US, but spend relatively less on IT. In US dollars, European IT spending will grow by 5.1% in 2006 – almost as high as the US growth of 5.8% – before slowing to 3.7% in 2007, in parallel with the US IT spending slowdown to 2.9%. 

Forrester forecasts a moderate 3.8% growth in European IT spending in 2006 while the European CIOs were planning average budget increases of just 1.6% moving from 2005 to 2006.

Forrester also estimated the country wise 2006 spending on IT in Europe: 

  • UK businesses and governments will spend €61 billion
  • German businesses and governments will spend €57 billion
  • France and Italy spend about two-thirds the size of the UK 
  • Spain, Netherlands, and Switzerland will spend €15 billion to €20 billion each
  • Belgium and Sweden each will spend around €10 billion 
  • Denmark, Austria, Poland, Finland, and Norway will spend €5 billion to €7 billion each 
  • All the other markets will spend less than €5 billion each.

The reports mentioned in this release, “European Enterprise IT Spending: 2006 To 2007” and “European IT Spending 2006: Country-By-Country”, are available to Forrester WholeView2TM clients.

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