IT Spending Flat for 2016

IT Spending Flat for 2016

IT spending flat for 2015 as compared with 2015 according to a report published last week.  Interestingly the two areas that saw the greatest reduction in spend were equipment (down 5.3% on top of a reduction of 4.6% in the prior year) and communications (down 1.4%  and 9.2% in the prior year.

Cumulatively that is over a 10% reduction in both areas.  Now when you consider that planning is going on right now for 2017 – what does that imply.

IT-Spending Flat

First, there will be pressure for “new” hardware as equipment has not been replaced that is approaching the end of its useful life.  Second if that happens there will be further pressure to keep IT salaries down as well as head count.

With that in mind, Janco is in the process of forecasting the net number of jobs in the IT job Market for the remainder of this year.

Last month the forecast was that there would be 76,500 new jobs created this year for the domestic IT job market.

IT Job Market Forecast - June 2016
Janco’s IT Job Market Forecast – June 2016

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Author: Victor Janulaitis

M. Victor Janulaitis is the CEO of Janco Associates. He has taught at the USC Graduate School of Business, been a guest lecturer at the UCLA’s Anderson School of Business, a Graduate School at Harvard University, and several other universities in various programs.