Optimism for 2004 Tech Recovery Is Increasing
Although a recently released Gartner Technology Demand Index shows IT spending remained soft in October, analysts remain optimistic that anticipated increases in 2004 will occur.
The results of the Gartner Technology Demand Index dropped from 87 in September to 85 in October. An index value of 100 means businesses spent exactly what they had budgeted for the month. Still, the market researcher says that overall projected technology demand for 2004 has rebounded to levels approaching the highs of this past June and July.
"These results show continued reluctance by IT decision-makers to release budgeted dollars," Martin Reynolds, group vice president and research fellow at Gartner, says. "A major question in the final weeks of 2003 will be what decision-makers decide to do with any unspent dollars."
The 2004 increases are being driven by projected demand among midsize (100 to 999 employees) and large organizations (1,000 or more employees). Gartner says renewed vigor in these two areas is key to driving sustainable growth in the demand for IT products and services. Midsize and large companies represent 44 percent of IT spending power.