EMEA enterprise IT spending set to fall
Gartner predicts 1.4% decline in spending in 2011
Europe, the Middle East and Africa will see a 1.4% decline in enterprise IT spending in 2011 at $835.3 billion, according to Gartner, while Euro-based enterprise IT spending in the region will grow by 2.3% in 2012. Western Europe will continue to slow EMEA growth through until 2015.
"The second recession is about to hit and CIOs must decide which way to turn," said Peter Sondergaard, senior vice president and global head of Research at Gartner. "The continued global economic uncertainty and the eurozone crisis will impact your IT budget in 2012, and your business will face difficult budgetary questions. Your choices will depend on which geographies you operate in, your industry, and the strength of your organisation when the economic storm arrives."
Sondergaard was speaking at the Gartner Symposium/ITxpo 2011, which is taking place through 10th November.
The IT spending outlook in EMEA has been hit by falling economic growth in the mature economies of Western Europe.
Austerity measures brought in to deal with the sovereign debt crisis will limit government spending on IT in particular and hinder economic growth, resulting in lower demand for IT products and services from businesses, according to Gartner.
Western Europe, which accounts for 80% of EMEA enterprise IT spending, will see enterprise IT spending in euros decline by 1.8% in 2011 and grow by only 1.5% in 2012. Government IT spending, including spending on education, will account for the largest share of Western Europe enterprise IT spending in 2011, at 20% of the total.
Gartner predicts that this sector will decline by 4.8% in 2011 and 1.7% in 2012, and that it will not recover to the level seen in 2010 until 2015.
"CIOs must build a realistic budget right now to lead from the front, irrespective of market growth. By 2014, CIOs will have lost effective control of 25% of their organisation's IT spending, and by 2017, chief marketing officers may have a bigger IT budget than CIOs do. It is time for CIOs to take the lead and reimagine their role," said Sondergaard.