IT budgets: Utilities are the big winners as spending returns to growth

Transportation, local government lose out in budget battle

IT budgets are set to creep up this year, with the utilities sector seeing the biggest year-on-year increase.

According to research from analyst Gartner, global enterprise IT spending will hit $2.6tr this year, up 2.9 per cent on 2009.

2010 will show a return to growth in IT budgets, after 2009 saw a decline in enterprise tech spending as it shrank 5.8 per cent on 2008's total.

electricity meters: Utilities CIOs will see their budgets rise the most among verticals

Utilities CIOs will see their budgets rise the most of all verticals
(Photo credit: Shutterstock)

Utilities will see the biggest budget growth for 2010, at 4.7 per cent year-on-year, followed by international and national government with a growth rate of four per cent.

The lowest growth rates will be seen in local and regional government where budgets will be up 1.7 per cent and transportation where spending will rise just 1.9 per cent on 2010.

According to the analyst, budgets should pick up slightly again next year, with growth expected to increase to 3.5 per cent. However, Gartner warns the enterprise IT market could yet stagnate and advises vendors to prepare for a zero-growth scenario.