Posted By: Technology Staff Editor In: Information Technology written by Mark LaPedus, courtesy of EE Times
SAN JOSE, Calif. -- IT spending is expected to decline by 3.8 percent in 2009, but the sector will rebound and hit positive 2.4 percent in 2010, according to Gartner Inc.
''As global economies continue to decline sharply in 2009, IT organizations worldwide are being asked to trim budgets and consumers are cutting back on discretionary spending,'' said Richard Gordon, an analyst with Gartner, in a recent presentation.
''The growth forecasts for all four of the key market sectors of hardware, software, IT services and telecommunications have been revised downward significantly, with only software spending growth remaining marginally positive in 2009,'' he said.
2001 and 2009 are the only two years that show a contraction in IT spending. IT spending in 2001 was down by 2.1 percent, according to the firm.
Here's the forecasts for the four key sectors:
*''Hardware spending is forecast to decline by 14.9 percent in 2009; this is significantly weaker than the 4Q08 iteration of the forecast, when growth was predicted to decline by 4.1 percent. In 2009, global PC unit shipments will contract about 10 percent while dollar spending will be down about 20 percent.''
*''Enterprise software revenue is forecast to grow by 0.3 percent in 2009, down from our prior forecast of (plus) 6.6 percent.''
*'' IT services spending is forecast to decline by 1.7 percent in 2009, down from 0.9 percent growth previously.''
*''Spending on telecommunications equipment and services is forecast to fall by 2.9 percent in 2009, down from (plus) 3.6 percent before.''
The outlook? ''IT spending is forecast to return to modest growth in 2010 as the global economy recovers. Through 2013 we expect a global IT spending to grow at a 5-year CAGR of 2.8 percent,'' the analyst said.
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