IDC forecasts slight rise in global IT spending

News 4 Feb, 2010

IDC’s Worldwide Black Book says worldwide IT spending projected to grow three per cent in 2010.

Global IT spending will rise about three per cent in 2010, according to the latest forecast from IDC’s Worldwide Black Book.

The small rise reflected the effects of the global recession on the IT industry, but also suggested a positive shift in the tech world.

"Following a decline in overall tech spending of 4.5 per cent at constant currency in 2009, IT spending will not fully recover from the global recession until sometime in 2011," said Stephen Minton, vice president of Worldwide IT Markets and Strategies at IDC.

The 2010 worldwide spending projection of $1.48 billion hit slightly below the 2008 peak of $1.5 trillion spent.

Predictions showed spending will remain mostly flat in western Europe throughout the year. The numbers stabilised after last year’s seven per cent decline, with a few market segments expecting growth.

In central and eastern Europe, IDC projected nine per cent growth following the 20 per cent spending crash in 2009.

The slow economic recovery will allow US organisations to capitalise on the demand for system and network upgrades but spending will still remain cautious, according to IDC. Growth in the US was projected at just under three per cent.

"Despite pent-up demand for upgrades and new applications following the deep spending cuts of the past year, economic uncertainty will combine with capital and credit constraints to inhibit spending in mature economies," Minton said. "The engine of global industry growth in 2010 will be in emerging markets, in particular China and India, where IT spending will recover much more quickly."

Across the globe, IDC expected overall hardware spending to grow by five per cent, software spending by two per cent, and IT services spending by three per cent.