2002 IT spending to rise

Gartner Dataquest is predicting that 2002’s worldwide IT spending will hit US$3.4 trillion, a 3.4% increase from 2001. The research firm says the telecoms sector is leading this growth, as other sectors cut their IT spending.

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By  Neil Denslow Published  October 8, 2002

Gartner Dataquest is predicting that 2002’s worldwide IT spending will hit US$3.4 trillion, a 3.4% increase from 2001. The research firm says that the telecoms sector is leading this growth, with other sectors cutting back their IT spending.

"Our forecast shows that we are unlikely to see anything beyond normal seasonality before the second quarter of 2003," says George Shiffler, principal analyst for Gartner Dataquest's computing platforms and economics research.

"We expect the return to spending to begin with shorter-term less strategic items, such as PCs, low-end servers and infrastructure software that can help deliver more value out of systems and networks. However, the global economic situation is quite fluid and given the rising uncertainty surrounding the strength of global economic recovery, there are still significant downside risks to the industry," he adds.

The telecommunications sector is on track to account for 58.4% of IT spending this year, totalling US$1344.6 billion, 4.8% rise on last year. IT services is second with end user spending expected to hit US$557.5 billion, followed by hardware spending at $323.3 billion.

"The telecommunications segment is being driven by the fixed and mobile telecom services markets," says Dean Eyers, group vice president and worldwide director for Gartner Dataquest's telecommunications group.

"Combined, these telecom services segments are forecast to grow 8.8% in 2002. Absent them, and total IT spending would actually decline by 0.5%," he notes.

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