Study: IT Spending Will Continue To Slow In 2002Study: IT Spending Will Continue To Slow In 2002

IT spending will slow even further in 2002, according to a new report from research firm Gartner and investment bank SoundView Technology Group.

A survey of 1,048 IT professionals found that IT spending by U.S. businesses in 2001 increased 2.5% over 2000. Next year, spending is expected to increase, but only by 1.5%. Seventy-five percent of those IT funds will be earmarked for maintenance and ongoing costs, rather than new investments, though the survey did identify a number of new spending hot spots that may receive extra funding. Those areas include:

• Security and business continuity

• Storage

• Web-based applications

• PDAs

• Web integration services

Gartner analysts say that despite some signs indicating the technology slump may have hit bottom, companies are still showing a stay-the-course attitude toward IT spending.