Study Predicts Canadian IT Spending To Rise In '08

Toronto, Ontario (AHN) - Canadian companies are expected to slow down in their information technology spending for the rest of 2008. This will result to a 3 percent rise in IT spending, according to a forecast by Forrest Research released Friday.

The research firm explained the lesser rate of IT investment to the booming western energy sector and the suffering eastern manufacturing sector.

Forrest Research predicts total IT spending to peak at $50 billion this year. Hardware and peripheral equipment purchase will likely decline by 4 percent compared to 2007 levels, but this will be partly offset by a modest growth in purchase of software, services and communication equipment.

The main driver of growth in the IT sector will still be business and government investment in new wireless technology and Internet networking systems which will go up by 6 percent in 2008, Forrest Research said.