NY, April 14 -- U.S. IT spending will increase to $417 billion in 2005 and reach $497 billion by 2008, a report from IDC reveals. According to the study, government, manufacturing, and banking continue to drive IT spending in process management and content management.

According to Anne Songtao Lu, program manager for IDC's Worldwide Vertical Markets, the consumer/home vertical has become increasingly important for IT vendors.

"We expect the share of this vertical's spending on software to increase from 10.5% in 2004 to 13.5% in 2008," said Lu. "Its share of spending in the personal computers and peripherals and storage markets is expected to reach 35% and 29%, respectively, driven mainly by the proliferation of wireless and digital technologies."
 
Other findings:
-- Driven by compliance and increasing data transfers, the need for content management is looming in industries such as healthcare, banking, insurance, media and government.
-- eCommerce is emerging across vertical markets.
-- Mobility has become a must-have function for IT technology.
-- Creating consistent technology platforms across the board is gaining momentum in manufacturing and capital markets.
-- Reducing cost is still a top business strategy.
 
IDC believes that vendors should position themselves to provide consistent, simplified solutions for end users and should supply solutions to increase process capabilities. In addition, vendors should focus on effectiveness, efficiency and the ability to close the gap between different business functions.