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IT spending to rise 2.5% in 2012, analyst predicts
IT News |
10/04/2012
Worldwide IT spending is forecast to total $3.7 trillion (£2.3 trillion) in 2012, as businesses continue to invest in the latest technology solutions.
The prediction, which comes from industry analyst Gartner, would see a 2.5 per cent increase on spending levels in 2011.
The figure has been slightly downgraded from the 3.7 per cent growth originally expected by Gartner for 2012, but remains in positive territory.
Gartner analysts claimed the revised growth rate has more to do with the US currency than an actual decline in spending.
The recent strengthening in the value of the dollar versus other currencies has resulted in the reduced growth rate, they claimed.
Indeed, when currencies are balanced, Gartner believes IT spending is on course to realise a growth rate of 5.2 per cent.
"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 spillover 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 the analyst.
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.
Similarly, US public IT spending is expected to be essentially flat in 2012 before contracting in 2013.
Gartner has predicted a strong performance in the mid-size business sector over the coming five years, driven by growth in spending on enterprise software.
And the worldwide telecom equipment market is forecast to show the strongest growth.
Spending is predicted to reach $472 billion (£297 billion) in 2012, a 6.9 per cent increase from 2011.
Posted by Jon Aspinell
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