IT spending growth on the slide

Giga Information Group Inc. has downgraded its estimates for IT spending in 2001 and 2002. The research firm now projects that total U.S. IT spending will decrease in 2001 by as much as 5% from 2000, and will increase by 4% in 2002 over 2001.

This changes Giga's pre-September 11 projections that total U.S. IT budgets in 2001 would decrease by 3%, and then recover in 2002 with a 7% overall increase.

The firm noted this downgrade follows heady growth of greater than 20% in IT spending in both 1999 and 2000.

The great majority of enterprises are, and will be, much more conservative and cautious about their IT investments, said Giga Chairman and CEO Robert K. Weiler in a statement. Firms will focus on leveraging their existing IT systems more effectively and in making them more secure; new applications and infrastructure will be acquired only when they deliver tangible benefits, and large-ticket capital investments will be avoided whenever possible, he noted.

For more on Tools & Technologies, go to: