2009 worst year ever for IT industry

Spending down five per cent, but growth predicted for 2010
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2009 has been the worst year ever for IT spending, with a global decrease of 5.2 per cent, according to research.

Despite the industry’s poor performance this year, the study by Gartner does predict growth for next year. Worldwide IT spending is projected to total $3.3 trillion in 2010 – a 3.3 percent increase on this year.

“While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012,” warned Peter Sondergaard, Gartner’s senior vice president and global head of research. “2010 is about balancing the focus on cost, risk, and growth. For more than 50 per cent of CIOs the IT budget will be zero per cent or less in growth terms. It will only slowly improve in 2011.”

According to Gartner’s research, the segment to be hardest hit this year has been computing hardware, with worldwide hardware spending forecast to drop by 16.5 per cent in 2009 to $317 billion.

Worldwide telecom spending is on pace to decline 4 per cent to nearly $1.9 trillion, but is expected to grow 3.2 per cent next year.

IT services spending is expected to total $781 billion in 2009, and will grow by an estimates 4.5 percent next year.

Software spending is forecast to decline 2.1 percent this year, but projected to grow 4.8 per cent in 2010.

Sondergaard added that emerging regions will be among those to see the strongest growth.

“By 2012, the accelerated IT spending and culturally different approach to IT in these economies will directly influence product features, service structures, and the overall IT industry. Silicon Valley will not be in the driver’s seat anymore,” he said.

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