Gartner: $44bn less spending on IT in 2012

Gartner has revised down its IT spending forecast by $44.4bn due to global currency issues, but still expects spending to increase

Gartner has revised down its IT spending forecast by $44.4bn due to global currency issues, but still expects spending to increase.

Gartner analysts said IT spending in the government sector is expected to contract moderately on a global basis in 2012 and 2013, driven by austerity measures in the eurozone. While there has been much commentary about the need for government cuts since the sovereign debt crisis emerged in Europe, it is only now that the impact of government budget cutbacks is being felt on IT spending in the region. 

Similarly, the analysts expect US government spending to be essentially flat in 2012 before contracting in 2013.

"Despite ongoing concerns about the global economic recovery – most notably around the resolution of eurozone sovereign-debt problems, worries about the potential for China's real estate 'bubble' to spill over and affect the rest of the economy, and rising oil prices – early signs in 2012 suggest that the global economic outlook has brightened a little," said Richard Gordon, research vice-president at Gartner.

IT spending in smaller businesses is expected to grow faster than large businesses, according to Gartner. It forecast SME IT spending to reach $874bn in 2012 and will grow to $1trn by 2016. Throughout the forecast period, mid-sized business IT spending is predicted to outperform other sectors in each of the next five years, driven by growth in spending on enterprise software, Gartner said.

Worldwide IT spending forecast (billions of US dollars)

  2011 spending 2011 growth (%) 2012 spending 2012 growth (%)
Computing hardware 404 7.7 421 4.3
Enterprise software 267 9.2 280 5.0
IT services 845 6.5 856 1.3
Telecoms equipment 442 7.2 472 6.9
Telecoms services 1,704 6.3 1,721 1.0
All IT 3,661 6.8 3,751 2.5
Source: Gartner, April 2012


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