The stimulus spending will add $40 to $60 billion per year to the overall U.S. IT industry over the next two years, with the largest short-term impact coming in the U.S. Federal sector.

New York – March 31, 2009 - The economic downturn, along with a new administration and the subsequent passage of the American Recovery & Reinvestment Act (ARRA), have quickly transformed the prospects for IT suppliers serving the U.S. Federal IT sector.

Spending on software and IT services in this sector (including applications software, project services and outsourcing) rose steadily in 2008 to $55.3bn in 2008. But PAC believes that growth in this market will be accelerated in coming years by ARRA funds, Health IT and Energy IT-related projects.

PAC’s new report entitled, “Federal IT Spending & the Obama Administration,” aims to give readers a better understanding of how the pendulum is shifting in Washington, around contracting, IT priorities and spending patterns, as well as to see how the use of IT in the Federal sector may be changing significantly in the years to come based on the Obama campaign, transition team, and now, the new administrations objectives around IT security, transparency and efficiency.

The report also highlights PAC estimation for the benefits that ARRA will bring to overall US IT spending, as well as our view into the most relevant short-term opportunities that IT suppliers should consider.

About Pierre Audoin Consultants (PAC): PAC is a global market research and strategic consulting firm for the Software and IT Services Industry (SITSI). PAC helps IT vendors, CIOs, consultancies and investment firms by delivering analysis and advice to address a range of growth, technology, financial and operational issues.

Our 30+-year heritage in Europe – combined with our US presence and worldwide resources – forms the foundation of our ability to deliver in-depth knowledge of local IT markets, anywhere. We employ structured methodologies – undertaking thousands of annual face-to-face interviews on both the buy and sell side of the market, as well as a bottom-up, top-down approach – to leverage our research effectively.

PAC publishes a wide range of off-the-shelf and customized market reports – including our best-selling SITSI® program – in addition to our suite of strategic consulting and market planning services. Over 160 professionals in 16 offices – across all continents – are delivering the insight that can make a difference to your business.

For more information, please visit our website at www.pac-online.com

For more information on the article, please contact:

Author:
Peter Russo
Tel: +1 (646) 277-7258
p.russo@pac-online.com

Press Contact:
Cristina Mustata
Tel: +1 (646) 277-7250
c.mustata@pac-online.com