Worldwide IT spending to grow 4.6 per cent in 2010: Gartner

Worldwide IT spending, led by emerging markets will reach $3.4 trillion in 2010, a 4.6 per cent increase from 2009 due to a slow but steady improvement in the macroeconomic environment in 2010, according to research firm Gartner.

"Last quarter, we did not expect to see IT spending levels recover to 2008 levels until 2011, however, now, with the upward revision to the current dollar forecast, we are projecting that global IT spending this year will approach the level seen in 2008," said Richard Gordon, research vice president at Gartner.

"Our updated forecast for IT spending to reach $3.4 trillion in 2010 is actually a year earlier than we expected leveling our previous forecast update, and reflecting a bounce back in underlying IT spending from the sharp drop in 2009, he added.

While this forecast might seem bullish, much of the increase in its revised 2010 forecast can be attributed to a projected decline in the value of the US dollar compared to 2009.

From a regional perspective, Gartner's IT spending forecast reflects the economic situation in each region and country with the emerging regions leading the way in terms of growth both in the short and longer term.

However, because of the scale of IT spending in North America and Western Europe, these regions weigh heavily in the global IT spending growth rate overall.

Gartner said that IT spending growth in emerging markets, with the exception of central and eastern Europe and some of the Gulf states, is expected to lead the way, with spending forecast to grow 9.3 per cent in Latin America, 7.7 per cent in the Middle East and Africa and 7 per cent in Asia/Pacific.

Gartner forecasts that recovery in Western Europe, the US and Japan will start more slowly, with Western Europe increasing 5.2 per cent, the US growing 2.5 per cent, and Japan increasing 1.8 per cent.

"As we begin 2010, multiple factors are conspiring to shape IT spending patterns in years to come," said Gordon. "Although recovery will be slow, over the next 12 to 18 months, gross domestic product (GDP) is projected to increase, consumer confidence is expected to improve, and the availability of credit should increase.''