Business Technology Spending to Top $330 Billion by 2017
Business-funded technology is expected to reach $275.2 billion in 2014, accounting for 55 percent of total technology spending. The business technology spending market will grow at 6.9 percent 5-year compound annual compound annual growth rate (CAGR) from $236.6 billion in 2012 to $330.7 billion by 2017, while enterprise IT grows slowly at a 1.9 percent five-year CAGR from $213 billion to 233.5 billion over the same forecast period, according to a report from IT research firm IDC.
Industry-specific operation is the largest business line, capturing approximately 45 percent of total business funded technology in 2014. The report, “United States Technology Buyer Forecast by Vertical: 2012 to 2017,” examines technology spending by 12 buying segments and how this new technology purchasing behavior differs by 15 vertical industries.
Marketing is the fastest growing functional area, growing at a five-year CAGR of 9.5 percent, reaching nearly $26 billion by 2017. The marketing function within the communications and media industry will spend the most on marketing in 2014, with the retail vertical growing the fastest over the forecast period—11.2 percent 5 year CAGR, according to the report.
“The connection between technology and business is accelerating at lightning pace as business users adopt what IDC refers to as the ‘four pillars’ — cloud, social, mobile and analytics,” Eileen Smith, program manager, for IDC’s global technology and industry research organization, said in a statement.
The new forecast quantifies how much money business areas including accounting, finance and billing, customer service, engineering, architecture and research, human resources, industry-specific operations, IT, legal, marketing, other horizontal operations, sales, security and risk and supply chain management are spending on technology, and how this new paradigm differs by industry.
Read the original article written by Nathan Eddy, eWEEK: SOURCE Original Article
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