Enterprise spending to rise in 2010

Gartner predicts a 2.9% increase in expenditure to $2.4tn, driven by utilities and governments

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Enterprise spending to rise in 2010 Enterprise sales are expected to increase this year, driven by demand from the utilities and government sectors (Shutterstock)
By  Ben Furfie Published  August 15, 2010

Enterprise spending is predicted to grow this year, with the utilities and government sectors expected to drive sales, according to Gartner.

Spending is expected to surpass $2.4tn, up 2.9% from 2009 when revenues fell to $2.3tn - a decline of 5.9% from 2008.

However, the analyst firm is urging both vendors to remain cautious, and to have plans in place encase of zero growth during the 2010/2011 economic period.

"The enterprise IT market will certainly return to growth in 2010, but we now expect it will grow by only 2.9% globally, down from the 4.1% growth we had forecast earlier this year," said Kenneth Brant, research director at Gartner.

"Utilities and the national and international government sectors will experience the strongest growth rates in 2010, with IT spending growing 4.7% and 4% respectively," he continued.

High growth markets, including utilities, government, media and communications, and healthcare are expected to be key focuses of vendors and system integrators, after Gartner suggested they focus their attention there.

However, the company urged caution at the risk of a stagnant economy; something it described as unlikely, but something that should still be planned for.

"We're advising our technology provider clients to prepare business plans for 2011 on the basis of our most-likely scenario for enterprise IT spending growth - 3.5%. However, they should act now to develop contingencies to mitigate the risk of zero growth in 2011 a scenario that carries a lower probability, but a much higher potential impact," he warned.

"The bottom line is that technology providers need to be prepared for the worst case, where commercial IT markets stagnate and governments' transition to fiscal austerity programmes."

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