Analysts slash business IT spending forecast

Worldwide enterprise IT spending across all industry markets will grow 2.9 percent in 2010 and surpass $2.4 trillion, according to Gartner. 

The figure represents a drop from the analyst’s previous estimate of 4.1 per cent growth for business IT, and follows a similar downgrading of its projections for total global IT spend. Gartner cited the European debt crisis as a leading factor.

Gartner said that spending in all industries is returning to growth after a difficult 2009, when IT spending declined by 5.9 per cent from 2008 levels.

“The enterprise IT market will certainly return to growth in 2010, but we now expect it will grow by only 2.9 percent globally, down from 4.1 percent 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 percent respectively in 2010.”