IDC forecasts worldwide IT spending will be $1.6tn (£1.02tn) in 2011, an increase of 5.7% over 2010.
IDC expects hardware spending will grow 7.8% year-on-year, and 12.8% growth will show in software and services.
The biggest growth area will be in public cloud services, according to IDC. Organisations will move a wider range of business applications into the cloud and SME business cloud use is predicted to surge in 2011.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
Mobile technology and service delivery are also set to experience major demand from users in 2011, according to IDC.
Frank Gens, senior vice-president and chief analyst at IDC, said, "We'll see the IT industry revolve more and more around the build-out and adoption of mobility, cloud-based application and service delivery, and value-generating overlays of social business and pervasive analytics."
IDC expects nearly 25 billion mobile apps will be downloaded in 2011, up from just over 10 billion in 2010. Over time, the still-emerging apps ecosystems promises to fundamentally restructure the channels for all digital content and services to consumers, it said.
IDC also predicts major IT firms will snap up social software providers during 2011, in a bid to jump-start or increase their social business footprints.