IT spending to increase 77% in MEA by 2011
Gartner expects Middle East and Africa IT expenditure to reach $259 billion by 2011
Gartner is predicting that IT spending in Africa and the Middle East will reach $259 billion for 2011, up from $182 billion in 2007.
Africa and the Middle East are strongly advancing in all IT areas and are narrowing the gap in IT spending with Latin America, according to Gartner.
The region shows a forecast compound annual growth rate (CAGR) from 2006 through 2011 of 77%, which is the strongest of all the emerging regions.
All emerging markets combined will generate IT spending of $1.1 trillion in 2008, growing to $1.3 trillion in 2011, according to the Gartner predictions.
The research company reported that IT spending continues to rise in the emerging regions of Asia/Pacific, Latin America, the Middle East and Africa, and Eastern Europe at a pace that far outstrips the industrialised world. The CAGR for IT spending in these regions for 2006 through to 2011 will be 8.5% versus 4.3% for mature markets.
Gartner also predicted that IT would be come more of a catalyst for gross domestic product (GDP) increases in future due to more efficient organisations and more competition between countries.
"Current GDP growth is impacting IT spending because it offers larger financial resources promoting, in many cases, more-balanced development within nations with significant consumer middle-class growth, stronger business base expansion and larger demand for IT products and services beyond Tier 1 cities," said Luis Anavitarte, research vice president at Gartner. "This growing ecosystem of economics and IT also provides credibility for countries to international lenders, boosting financial resources and investments that are so critical for IT expansion."