US and Canadian companies spend 2% of their revenues on IT

Median corporate IT spending in 2006 across all industry sectors in the U.S. and Canada is 2% of revenue, according to Computer Economics. The 2% ratio is an increase from 1.7% in 2005, and above the 1.9% figure from 2004. 2006 ratio is the highest that this metric has reached since 1997, during the build-up to Y2K, when it reached 2.2%. The median growth in IT spending on a dollar basis across all respondents this year is 4.1%, outpacing the 2005 U.S. GDP growth rate of 3.5% in 2005.