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IT spending experiences worst year in 2009

Posted on Oct 22 in O-TELby hanriPrint

2009 saw a large drop in global IT spending – but will it recover in 2010?

During the Gartner Symposium/ITxpo 2009 in Orlando Florida, which runs from 18-22 October, analysts discussed the future of the IT industry.According to Gartner the IT industry is exiting its worst year ever, as overall worldwide IT spending is on pace to decline 5.2% over 2009.

Enterprise IT spending will struggle more, dropping 6.9 percent over 2009. However, analysts predict that the IT industry will return to growth during 2010 with a spending forecast of US$3.3 trillion. This is a 3.3% increase from 2009.

“While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012,” said Peter Sondergaard, senior vice president at Gartner and global head of Research.

“2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of CIOs the IT budget will be 0% or less in growth terms. It will only slowly improve in 2011,” continued Sondergaard.

The hardware market has struggled more than other segments, with worldwide hardware spending forecast to total US$317 billion in 2009, a 16.5% decline. In 2010 hardware spending will be flat.

Worldwide telecom spending is on pace to decline 4% in 2009 with revenue of nearly US$1.9 trillion. In 2010, telecom spending is forecast to grow 3.2%.

Worldwide, IT services spending is expected to total US$781 billion in 2009, and it is forecast to grow 4.5% in 2010.

Worldwide software spending is forecast to decline 2.1% in 2009, and the segment is projected to grow 4.8% in 2010.

On a regional basis, emerging regions will resume strong growth. “By 2012, the accelerated IT spending and culturally different approach to IT in these economies will directly influence product features, service structures, and the overall IT industry. Silicon Valley will not be in the driver’s seat anymore,” Sondergaard said.

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