Worldwide IT spending set to grow

Gartner predicts 5.1% growth in 2010 to 2011

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Worldwide IT spending set to grow Gartner has predicted that IT spending will continue to grow in 2011 and has forecast an increase of 5.1% from 2010 to 2011.
By  Georgina Enzer Published  January 24, 2011

Worldwide IT spending is forecast to increase by 5.1% from 2010 to 2011, bringing spending to a total of $3.6 trillion, according to the latest outlook by Gartner.

In 2010, worldwide IT spending totaled $3.4 trillion, up 5.4% from 2009 levels.

The IT industry performed better than expected in 2010 at 5.4%, forcing Gartner to adjust its outlook for 2011 from the previous forecast of 3.5% growth.  Gartner predicted growth for 2010 at 3.2%.

"Aided by favourable US dollar exchange rates, global IT spending growth is expected to exceed 5% in 2010, but a similar level of growth in 2011 - while forecast - is far from certain, given continued macroeconomic uncertainty," said Richard Gordon, research vice president at Gartner. "While the global economic situation is improving, the recovery is slow and hampered by a sluggish growth outlook in the important mature economies of the US and Western Europe. There are also growing concerns about the ability of key emerging economies to sustain relatively high growth rates. Nevertheless, as well as a fundamental enabler of cost reduction and cost optimisation, investment in IT is seen increasingly as an important element in business growth strategies. As the global economy repairs itself in coming years, we are optimistic about continued healthy spending on IT."

Gartner says telecom equipment spending is set to rise 9.1% giving the sector the strongest growth in 2011.

Gartner also had to revise its outlook upwards for mobile devices because of strong sales in the third quarter of 2010, driven by smartphones in mature markets and white box devices in emerging markets, as well as stronger local currencies.

Computing hardware is also set to grow in 2011, Gartner is predicting a 7.5% growth for the year.

The computing hardware segment is forecast to grow 7.5% in 2011, but Gartner analysts said vendors face possible challenges, particularly in the area of PC growth, given likely weak economic growth through the first half of 2011.

Gartner is holding their CIO Leadership Forum 2011 to provide insight and advice on how to anticipate changes in the global economic climate and identify and act on enterprise growth. The forum will be held in Dubai, UAE on 28th February - 1st March 2011 at the Raffles Hotel. The Gartner CIO Leadership Forum in an executive-only program.

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