According to the most recent survey on IT spending from Computer Economics, large organizations are increasing their budgets conservatively for the upcoming years. The median increase is projected to be 2.5 percent, making it the lowest growth rate for IT spending since 2004.

According to the research firm, most corporations stuck with their IT hiring and employment projections, proving accurate the prediction of 5 percent hiring growth for 2007. One-third of large organizations, however, indicated that they spent less than they'd originally planned, while only one in five said they'd spent more.

Along with a damper on IT spending, most survey respondents said they expected budget increases of only about 2 percent for 2008. According to analysts, if economic conditions grow worse, IT spending will flatten relative to 2007 levels.

An executive summary of the full report is available for download at the Computer Economics web site.