Nicholas Carr has been going on about this for a while, so it’s not surprising that he returns to the theme somewhat gleefully. Still, the facts do seem to be supporting his thesis…

It’s become clear that the slowdown in IT spending is not a passing cyclical event but a secular trend, a reflection of a basic change in the way companies view information technology. That fact was underscored last month when Information Week published the latest edition of its annual survey of IT spending among the “InformationWeek 500” – the companies that it identifies as being the most innovative users of IT. The survey reveals not only that IT budgets haven’t jumped since 2003, but that in fact they’ve continued to erode. Between 2003 and 2006, IT spending as a percentage of revenue has on average fallen from 3.66% to 3.21%. Of the 21 industry sectors tracked by Industry Week, only 5 saw in an increase in IT spending as a percentage of sales over the last three years. In absolute terms, IT expenditures have dropped as well, from an average of $353 million in 2003 to $304 million today. Of those shrinking budgets, moreover, the percentage devoted to purchases of new hardware and software slipped from 37% in 2003 to 34.5% today.

Remember, these are the most innovative users of technology, the ones that set the pace for everyone else…