Global IT spending to rise nearly 5 pct in 2010: Gartner

Relax News
Friday 22 January 2010 01:00 GMT
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(Max Bukovski)

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Spending on information technology worldwide will grow nearly five percent in 2010 as an upturn in the global economy prompts companies to spend more, a consultancy said Thursday.

All major segments from computing hardware to telecom services are expected to grow as confidence returns and more credit is made available, research and advisory services provider Gartner said.

The 4.6 percent projected increase to 3.4 trillion dollars marks a "significant improvement" from 2009 when worldwide IT spending declined by 4.6 percent, the global consultancy said in a note issued in Mumbai.

"Last quarter, we did not expect to see IT spending levels recover to 2008 levels until 2011," said Richard Gordon, research vice president at Gartner.

But now, although recovery will be slow, "gross domestic product is projected to increase, consumer confidence is expected to improve, and the availability of credit should increase," Gordon said.

"At the same time, pent-up demand for new technologies will be released as enterprises focus on new growth opportunities," he said.

IT growth in emerging markets is expected to lead the way with spending forecast to grow 9.3 percent in Latin America, 7.7 percent in the Middle East and Africa and seven percent in the Asia-Pacific region.

The forecast comes as India's flagship software services companies Tata Consultancy Services, Infosys Technologies and Wipro announced forecast-beating quarterly earnings.

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