A new report from the Institute for Supply Management (ISM) and the International Energy Agency (IEA) shows that the IT and industrial sectors have more than doubled their spending on software and technology over the past decade.
The spending by IT and IT-related industries grew by 10.9 percent and 9.9%, respectively, between 2007 and 2016, as they have over the last five years, according to the report.
The IT industry’s software spending, on the other hand, has fallen, though not by much.
“Despite the slowdown in software spending among IT-oriented companies, IT spending is still a major contributor to overall IT-focused business activity, with software accounting for 13.4 percent of total IT spending,” the IESA said in a statement.
“This data suggests that in spite of recent economic and regulatory changes, IT remains a key driver of business growth and economic activity.”
The IT and software spending is also reflected in the IEA’s index of business activity and in the index of the total economy, which is one of the most common measures of economic activity.
The index of IT spending rose by 7.3 percent between 2007 to 2016, while IT-linked industries’ spending fell by 10 percent.
For IT-associated industries, the spending rose more than 10 percent, but IT-spending in those industries was only a bit more than half the size of their IT-based counterparts.
The study comes on the heels of the IEEA releasing a report in January that showed the IT sector is losing jobs to automation.
“As a result, IT-intensive industries such as manufacturing and service are seeing a shift toward more automated processes and automation processes,” the report said.
The report’s authors said the “greater reliance on software is the primary reason why the IT industry has continued to see an overall decline in IT-sourced employment and the overall growth of IT-heavy industries.”
The IEE, which works with industry stakeholders to develop trade agreements, said in its report that the report “shows that in the long term, IT is the future of the economy, with IT-specific businesses and IT jobs in particular contributing more than $10 trillion in additional economic activity annually to the U.S. economy.”