Global IT spending to touch $3.4 Trillion: Gartner

By siliconindia   |   Saturday, 23 January 2010, 00:25 IST   |    1 Comments
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Global IT spending to touch $3.4 Trillion: Gartner
Bangalore: A slow but steady improvement in the macroeconomic environment in 2010 should support a return to modest growth in overall IT spending, according to research firm Gartner. The worldwide IT spending is expected to touch $3.4 trillion in 2010, a 4.6 percent increase from 2009. Although modest, this projected growth represents a significant improvement from 2009, when worldwide IT spending declined 4.6 percent. All major segments (computing hardware, software, IT services, telecom, and telecom services) are expected to grow in 2010 (see Table 1). "Last quarter, we did not expect to see IT spending levels recover to 2008 levels until 2011, however, now, with the upward revision to the current dollar forecast, we are projecting that global IT spending this year will approach the level seen in 2008," said Richard Gordon, Research Vice President at Gartner. "Our updated forecast for IT spending to reach $3.4 trillion in 2010 is actually a year earlier than we expected leveling our previous forecast update, and reflecting a bounce back in underlying IT spending from the sharp drop in 2009." According to Gordon, while this forecast might seem bullish at first, it's important to factor in the impact that exchange rates will have on the markets. "Much of the increase in our revised 2010 forecast can be attributed to a projected decline in the value of the U.S. dollar compared to 2009," he said. From a regional perspective, Gartner's IT spending forecast reflects the economic situation in each region and country with the emerging regions leading the way in terms of growth both in the short and longer term. However, because of the scale of IT spending in North America and Western Europe, these regions weigh heavily in the global IT spending growth rate overall. IT spending growth in emerging markets (with the exception of Central and Eastern Europe and some of the Gulf states) is expected to lead the way, with spending forecast to grow 9.3 percent in Latin America, 7.7 percent in the Middle East and Africa and seven percent in Asia/Pacific. Recovery in Western Europe, the U.S. and Japan will start more slowly, with Western Europe increasing 5.2 percent, the U.S. growing 2.5 percent, and Japan increasing 1.8 percent.

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