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Global IT spending set to rise
- — 06 August, 2010 00:32
IT spending has shown some hefty recovery after the economic travails of previous years. According to research from IDC, global sales of software and hardware have recovered from the low point of the recession and, consequently, the analysis company has revised its spending forecasts for the year.
According to the research, services expenditure is set to rise two percent, software spending by four percent and hardware spending by a whopping 11 percent. IDC is projecting an overall increase in expenditure of six percent.
The biggest increase in the developed economies is expected to be in the US, with a projected growth in expenditure of five percent, a turnaround from the four percent fall in 2009. The US rise is dwarfed by the growth in markets like Chinam which is expected to grow by 21 percent this year - ahead of performers such as Russia and Brazil with 17 percent and 14 percent respectively.
"The first half of 2010 was robust by any standards for the IT industry," said Stephen Minton, vice president of Worldwide IT Markets and Strategies at IDC. "PC shipments were strong, enterprise spending began to recover from the depths of the recession, and consumers remained enthusiastic about new devices such as smartphones.
However, it's not all rosy on the horizon. IDC analysts are still cautious about the possibility of a double-dip recession. "Amidst the general sense of optimism that has accompanied results from the first half of this year, there are also reasons to be wary of excessive exuberance," said Minton. "Our surveys indicate that businesses are still cautious about committing to new, long-term IT projects, and are still anxious about the possibility of a double-dip recession. Decision-making cycles remain long, and many enterprises have contingency plans in place for the next 12 months which could see more projects suspended."