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Gartner Says Worldwide IT Spending To Grow 4.6 Per Cent in 2010

Emerging Markets to Lead the Way in IT Spending as Economic Recovery Slowly Gets Underway

(PresseBox) (Stamford,Conn, ) A slow but steady improvement in the macroeconomic environment in 2010 should support a return to modest growth in overall IT spending, according to Gartner, Inc. Worldwide IT spending will reach $3.4 trillion in 2010, a 4.6 per cent increase from 2009.

Although modest, this projected growth represents a significant improvement from 2009, when worldwide IT spending declined 4.6 per cent. All major segments (computing hardware, software, IT services, telecom, and telecom services) are expected to grow in 2010 (see Table 1).

"Last quarter, we did not expect to see IT spending levels recover to 2008 levels until 2011, however, now, with the upward revision to the current dollar forecast, we are projecting that global IT spending this year will approach the level seen in 2008," said Richard Gordon, research vice president at Gartner. "Our updated forecast for IT spending to reach $3.4 trillion in 2010 is actually a year earlier than we expected leveling our previous forecast update, and reflecting a bounce back in underlying IT spending from the sharp drop in 2009."

"While this forecast might seem bullish at first, it's important to factor in the impact that exchange rates will have on the markets," Mr. Gordon said. "Much of the increase in our revised 2010 forecast can be attributed to a projected decline in the value of the U.S. dollar compared to 2009."

From a regional perspective, Gartner's IT spending forecast reflects the economic situation in each region and country with the emerging regions leading the way in terms of growth both in the short and longer term. However, because of the scale of IT spending in North America and Western Europe, these regions weigh heavily in the global IT spending growth rate overall.

IT spending growth in emerging markets (with the exception of central and eastern Europe and some of the Gulf states) is expected to lead the way, with spending forecast to grow 9.3 per cent in Latin America, 7.7 per cent in the Middle East and Africa and 7 per cent in Asia/Pacific. Recovery in Western Europe, the United States and Japan will start more slowly, with Western Europe increasing 5.2 per cent, the U.S. growing 2.5 per cent, and Japan increasing 1.8 per cent.

"As we begin 2010, multiple factors are conspiring to shape IT spending patterns in years to come," said Mr. Gordon. "Although recovery will be slow, over the next 12 to 18 months, gross domestic product (GDP) is projected to increase, consumer confidence is expected to improve, and the availability of credit should increase. At the same time, pentup demand for new technologies will be released as enterprises focus on new growth opportunities and increase spending plans. IT vendors and service providers must ensure that they are poised to take advantage of this improving landscape."

Gartner Executive Programs (EXP) recently published the survey results for the 2010 CIO Agenda. The survey of 1,586 CIOs, representing more than $126 billion in corporate and publicsector IT spending, showed worldwide IT budgets in 2010 increasing by a weighted global average of 1.3 per cent in nominal terms compared to 2009. Gartner analysts use the input from the survey as fundamental assumptions that shape the global IT spending forecast. The growth rates in the IT spending forecast differ from the CIO survey expectations because the IT spending forecast includes consumer, as well as enterprise spending, and because the forecast is affected by exchange rates.

Gartner YouTube Channel

Additional comments from Mr. Gordon regarding the outlook for the IT industry are available on the Gartner YouTube channel at http://www.youtube.com/.... Additional videos with Gartner analysts are available at http://www.youtube.com/....

Gartner UK Ltd

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technologyrelated insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in hightech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit www.gartner.com.