Global IT spending to witness 3.9 per cent hike in 2010
US-based global IT research and advisory firm Gartner has forecast that the global spending on information technology to be to the tune of $3.350 trillion during the current calendar year compared to $3.225 trillion spent during 2009. While this denotes a 3.9 per cent rise compared to the previous year, in reality, Gartner has decreased its point of view on the IT sector from the predictions made for the Q1 this year. At that time, Gartner had forecast a 5.3 per cent rise in global IT spending in view of the depreciation of the euro vis-à-vis the US dollar in early 2010.
A website quotes Gartner vice-president (Research), Richard Gordon, as saying that the euro crash is having a negative impacting the outlook for global IT spend. He said that during the first half of 2010, the US dollar strengthened vis-à-vis the euro and this drift is likely to persist during the remaining part of the year. This trend, in turn, will exert a downward pressure on the growth of IT spending that is primarily dominated by the US. Gordon further said that the euro crash will result in the European governments to curtail their long-term spending in the public sector, as they will have to struggle to control the budget deficits over the ensuing five years as well as lower debt during the next decade.
At the same time, the Gartner research vice-president reminded that the European economic crisis is likely to impede the fiscal activities of the private sector as a result to the direct effect of austerity initiatives taken on crucial government contractors as well as an oblique influence of the ‘ripple effect’. He suggested the need for an effectual policy reaction with a view to encourage investment in the IT sector.
While the appreciation of the US dollar vis-à-vis the euro has dampened the spend on software, information technology services and telecommunication, global spending on computer hardware is expected to touch $363 billion during this year – an increase of 9.1 per cent compared to the money spent on this account in 2009. According to Gordon, the computer hardware sector is still benefitting from a robust PC sector that comprises around 66 per cent of the entire spending in this domain and it is anticipated that shipment of PCs will continue to be vigorous all through this year as well as in 2011.