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FRAMINGHAM, Mass., January 24, 2005 Worldwide IT spending reached $965 billion in 2004 and will increase at a compound annual growth rate (CAGR) of 6% from 2004 to 2008 to reach $1.2 trillion, new research published by IDC reveals. From a U.S. perspective, IDC's third quarter 2004 forecast shows U.S. IT spending will reach $416 billion in 2005, an increase of 5.8% from 2004. IDC anticipates that IT spending in the U.S. will continue to increase and reach $501 billion by 2008, a CAGR of 5.9%. based business from home
These results indicate a positive outlook for the U.S. and worldwide IT market, particularly after 2005. With an improving business environment and recent GDP gains, companies are loosening their restraints for information technology investments.

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We remain optimistic about the U.S. and global IT opportunities for vendors, said Anne Lu, manager for IDCs Worldwide Vertical Markets research program "Banking, discrete manufacturing, and government stand out as the largest IT buyers. IDC believes vendors can continue to succeed in this market by selling solutions that can help industries solve their business challenges. In addition, vendors need to create efficient vertical market strategies to tackle the different pain points of various industries.

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Among the key findings from IDC's research on the U.S. and global market for IT spending by vertical industry are the following:

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* Worldwide software spending is expected to reach $213 billion in 2005, reflecting yearly growth of 7% from 2004 to 2005. The largest increases will be in the government and services industries. business home income
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* The worldwide hardware market revenue is set to recover in the 20042008 period to reach $465 billion in 2008. The market is mainly being driven by the robust spending from consumer/household, communications and media, and government sectors. business home job opportunity
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* IDC expects spending on IT services worldwide to reach $423.8 billion in 2005, reflecting yearly growth of 5.7%. The largest market opportunities reside in banking, discrete manufacturing, and government. ameriplan business opportunity
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* Software spending in the U.S. is expected to reach $106 billion in 2005, reflecting yearly growth of 6.6% from 2004 to 2005. The biggest software buyers will be services, discrete manufacturing, and the consumer/home market. business home legitimate
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* The U.S. IT services market will reach $180 billion in 2005, reflecting year-over-year growth of 5%. The largest market opportunities reside in banking, discrete manufacturing, and government. affiliate business opportunity
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* The U.S. PC market will reach $49 billion in 2005. The growth in this market is due to the strong spending from the consumer/home sector, which accounts for almost one third of the U.S. PC market. business opportunity unlimited
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Full data and analysis on this research is available in IDC's two new studies: Worldwide IT Spending 2004-2008 by Vertical Market Forecast Update: North America, Western Europe, Asia/Pacific, and Rest of World (IDC #32668) and U.S. IT Spending by Vertical Market 2004-2008 Forecast (IDC #32654). These studies present an updated five-year forecast for worldwide and U.S. information technology spending within 17 vertical markets. The purpose of these documents is to identify and quantify the effects of recent trends and events influencing the IT opportunity among 17 vertical markets from 2004 to 2008. business opportunity travel

To purchase these documents, call IDC's sales hotline at 508-988-7988 or email sales@idc.com.