IDC: IT Spending Expanding

08/24/2010

IDC IT spending indicators for August both showed improvement over July's results. Combined, the two indicators nearly match IDC's latest Black Book forecast of 5.2% growth in U.S. IT spending over the next 12 months. In addition, the Buyer Intent indicator has caught up to the U.S. GDP growth forecast of 3%.



ebizQ received the following:

"From what we can see at IDC, there is still a major hardware refresh going on, software sales are starting to pick up, and services backlogs are building even if revenue is not," said Stephen Minton, vice president, Worldwide IT Markets and Strategies at IDC. "Although the market indicators will continue to be challenged by weak revenue and macroeconomic growth, buyer intent remains healthy. Hopefully this will be enough to sustain the long, slow recovery."

The Buyer Intent metric for August is 1030, which is up from 1017 in July and slightly higher than the year's previous high of 1026 in March. For the second month in a row, the Line of Business executives surveyed by IDC had a more optimistic outlook than the CIOs. Both groups raised their outlook for the year ahead, with the CIOs snapping a two-month slide. Buyer Intent reflects market demand for IT products and services over the next 12 months.

The Market Indicators number for August, which combines input from economic and IT industry revenue forecasts, was 1070, up from 1061 in July but still below the 1090 mark set in May. The macroeconomic indicator matched the revenue indicator in August – only the second time this has happened in the six year history of FutureScan.

FutureScan is a set of market metrics that measure supply and demand in the IT industry based on leading indicators and customer surveys. Values reflect expectations of future growth, with an index value of 1000 indicating zero growth and each additional 10 points representing roughly 1% of expected growth or contraction.

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