IT spending in Europe has bottomed out, and the beginnings of a
gradual recovery are already appearing, according to IDC's
monthly-updated index of technology expenditure across Western
Europe.
The market research company has increased its 2002 growth forecast
for annual IT spending in Western Europe, from 6.4% in January to
6.6%.
This marks a recovery from growth of 5% during 2001 and IDC is
predicting growth will accelerate to 9% in 2003 in line with
overall economic recovery.
Stephen Minton, director of IDC's European IT Markets Centre said:
"After the downturn in spending which characterised the second half
of 2001, there are now leading indicators of an imminent rise in
demand."
In the new forecasts, the fastest-growing market in Western Europe
in 2002 will be Sweden, where the market is expected to rebound
with an 8.1% increase in IT spending this year. Strong growth is
also expected in France, Italy, Finland, Spain and the UK. The
weakest markets will be Germany, Austria, Belgium and
Switzerland.
"The myth that over-spending on IT, the so-called bubble, will
deflate IT demand for the next two years, will be put to rest as
the economy recovers," said Minton.
"Continued innovation, new technology platforms, clear ROI on
technology spending, wireless and broadband roll-out, and
centrality of e-business to the wider economy, these things will
make increases in IT spending an unstoppable force."