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.
