2007 is on pace to be a milestone year for the IT industry, as worldwide IT spending is projected to surpass $3 trillion, according to Gartner. IT spending in 2007 will reach $3.1 trillion in 2007, an 8% increase from last year, and spending for 2008 is forecast to grow 5.5% and total $3.3 trillion.

Gartner outlined how IT leaders must be able to respond to change quicker than ever before. There is a need for flexibility and a need for agility.

Peter Sondergaard, senior vice president and global head of Research at Gartner, said IT leaders should create two IT budgets for 2008. The first should reflect the same kind of marginal growth prepared during the past six years. The second budget should assume the need to cut costs in response to the arrival of a possible recession.

“The business plans that you had in June are probably not going to completely address the changed conditions of your business in November,” said Sondergaard told an audience of 6,000 IT decision makers. “Together with your business colleagues and your CEO you are going to have to deliver new efficiencies, new innovations and new ideas to sustain profitability and growth. IT will be core to many of those responses.”