IT spending bounces back in 2010

Gartner believes IT spending will increase next year

October 22, 2009

Gartner believes IT spending will increase next year

The IT industry is exiting its worst year ever, as worldwide IT spending is on pace to decline 5.2 percent, according to Gartner.

Worldwide enterprise IT spending will struggle more with IT spending dropping 6.9 percent. The IT industry will return to growth with 2010 IT spending forecast to total $3.3 trillion, a 3.3 percent increase from 2009.

Gartner provided the latest outlook for the IT industry during Gartner Symposium/ITxpo, which is taking place here through October 22. While IT spending will increase next year, Gartner cautioned IT leaders not to be overly optimistic.

“While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of CIOs the IT budget will be 0 percent or less in growth terms. It will only slowly improve in 2011.”

On a regional basis, emerging regions will resume strong 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,” Mr. Sondergaard said.