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.