IT market set for two per cent growth

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The economy is struggling, but demand for IT will continue to grow, according to European Information Technology Observatory (EITO).

A report from the research institute predicted that turnover for IT – hardware, software and services – across Western Europe will increase by two per cent next year to €315 billion (£294 billion).

Software and services providers will see an increase in turnover to 3.2 per cent to €228 billion, but hardware makers will take a hit, with turnover falling 1.3 per cent to €87 billion. This would partially be driven by demand from the public sector, which is less likely to see an immediate decrease in investment because of the economy.

"IT expenditure of businesses will continue to grow even in an economic recession", said EITO chairman Bruno Lamborghini. "Information technology is of strategic importance for companies in a crisis situation because it makes operations more efficient and more economic."

Globally, the IT market will grow by 2.7 per cent, with growth of 0.8 per cent in the US – down from a previous forecast of 4.4 per cent earlier this year.

"So far, the IT industry has navigated the economic storms with relative stability," said Lamborghini, adding that IT systems can help businesses survive economic turmoil. "Modern IT systems lead to lower costs, promote innovations in products and processes, and are therefore an important instrument in managing the crisis."

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