IT spending well up despite downturn


IT spending well up despite downturn

Antony Savvas

Despite economic concerns, worldwide IT spending will exceed £1.8trillion in 2008, an increase of 8% from 2007 spending, said analyst Gartner.

Gartner said much of this growth is based on the decline in the US dollar. But the estimated worldwide IT spending growth expressed in constant currency is still forecast to be around 4.5%.

"The US-led economic downturn shows no sign of causing a recession in IT spending," said Jim Tully, an analyst at Gartner. "In subsequent years we will see reduced growth, but the fundamentals remain strong. Emerging regions, replacement of obsolete systems and some technology shifts are driving growth," he said.

Gartner said the IT industry was facing important strategic issues. It said organisations are switching from company-owned hardware and software assets to per-use service-based models. This will impact the industry in various ways.

Tully said, "The projected shift to cloud computing, for example, will result in dramatic growth in IT products in some areas and in significant reductions in other areas.

"In general, assets will be utilised with greater efficiency, and we are assuming that the overall effect on market growth will be neutral. We also recognise that there is considerable upside potential for higher growth."

Gartner said worldwide software spending is on pace for the strongest growth rate in 2008 at more than 10%. IT services spending ranks a close second with more than 9.4% growth.

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