Analyst Gartner said that European companies will
increase their IT spending by 3% in 2006, which is more than the
2.5% this year.
But the analyst said the 3% increase was only just enough for
companies to maintain their IT departments and support the
business.
“This is not the spending recovery hoped for by the IT
community,” said Gartner analyst Roger Fulton.
“IT spending in Europe is closely aligned with gross domestic
product [GDP] growth. Three of the four major countries in Western
Europe are struggling to maintain economic growth, which is linked
to the limited growth in IT spending,” he said.
The Gartner estimate is based on regular polls of 400 companies
across Europe. Gartner said companies in Germany, Spain and
Portugal plan the largest IT budget increases – up 6% in 2006. The
increase in Germany is despite the country’s economic decline.
Companies in the UK and Scandinavia are aiming for increases of
less than 4%, while in France, IT directors are faced with
increases of only 0.5%. In Belgium and the Netherlands, IT
departments are faced with a 2% cut in spending.