Organizations Expect Flat Growth in IT Spending in 2016
Computer Economics' forecast indicates that IT operational budgets will grow about 2 percent at the median--representing a slowdown in growth.While some IT organizations are bullish about the future and even forecasting a revival in IT capital spending, others, particularly larger ones, anticipate no growth in their budgets and appear to be hunkering down. These are among the findings in Computer Economics’ 2016 IT budget outlook, which is based on projections of IT spending plans by 86 organizations in the U.S. and Canada. The company’s forecast indicates that IT operational budgets will grow about 2 percent at the median, and while still positive, the growth rate is slowing from the rate of improvement over the previous four years. "Large companies are more concerned about the global environment than anything going on in Washington, D.C.," John Longwell, vice president of research at Computer Economics, told eWEEK. "While you can make a case that the party in power always props up the economy in an election year, right now there is no party in power and we’ve pretty much run out of tools for propping up the economy."
Longwell noted the Fed is raising interest rates, and there is no appetite for fiscal stimulus, and the best that can be said is that House budget hawks are shying away from shutting down the government, but that is hardly cause for bullish optimism.