IDC predict spending upturn in Europe

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IDC predict spending upturn in Europe

CW360.com reporters
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."

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