IT spending growth expected to slow in 2009
February 27, 2009
Global spending on information technology is expected to grow by just 0.5 percent in 2009, according to market forecaster IDC.
The company downgraded its prediction from November 2008, when it forecast 2.6 percent growth in IT spending for 2009. This could translate into a significant decline in revenues for U.S.-based IT suppliers, IDC said.
Overall spending growth will be slowed down by lagging hardware sales, but worldwide spending on software and IT services are each expected to grow 3.4 percent in 2009. Worldwide IT spending in 2009 will be $1.44 trillion and in the U.S. total spending will be $491 billion.
"Fourth quarter data from a number of key markets and geographies clearly shows that companies have been very quick to pull back their spending," said John Gantz, chief research officer at IDC.
Investments in software and services are being maintained in pursuit of productivity and efficiency gains, Gantz said, while companies are slashing hardware spending to "squeeze more out of existing assets."
Stephen Minton, vice president of worldwide markets and strategies, said the 2009 outlook is worse than analysts forecast three months ago, but IT spending should recover in 2010 and gain momentum through 2012.
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