Gartner lowers 2012 IT spending forecast to 3.7 percent growth

The analyst firm cites Thailand floods, the Euro zone crisis and general economic uncertainty for the downgrade

Research firm Gartner announced Thursday that it has lowered its 2012 IT spending forecast, with spending expected to rise only 3.7 percent, rather than the previous forecast of 4.6 percent growth.

"Faltering global economic growth, the eurozone crisis and the impact of Thailand's floods on hard-disk drive (HDD) production have all taken their toll on the outlook for IT spending," Gartner vice president Richard Gordon said in a statement.

Global IT spending in 2012 will now total US$3.8 trillion, Gartner said. Enterprise software, hardware, IT services and telecoms services and equipment will all see lower growth rates, it added.

The destruction caused by the floods in Thailand, where many hard drives are made, will have a serious impact on supply over the next six to nine months, Gordon said.

Economic turmoil in the Euro zone was another factor in Gartner's decision to downgrade. The firm anticipates that IT spending in Western Europe will drop 0.7 percent in 2012.

Gartner now predicts that hardware spending in 2012 will grow 5.1 percent to $424 billion, while enterprise software revenues will rise 6.4 percent to $285 billion. The categories grew 7.6 percent and 9.6 percent, respectively, in 2011.

Telecom equipment will see the strongest growth, rising 6.9 percent to $475 billion. That's only a slight drop from 2011's 7.7 percent growth rate.

But Gartner's revised forecast expects much weaker growth in telecom services, with a 2.3 percent rise to $1.74 trillion, down from the 6.1 percent jump in 2011.

IT services revenue in 2012 will also significantly lag 2011, rising 3.1 percent to $874 billion, according to Gartner. In 2011, IT services growth was 6.9 percent.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Brand Post

Bitdefender 2018

Secure and Save before time runs out with Bitdefender Exclusive Clearance Offer! Get Bitdefender Total Security 2018 Now!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?