Gartner and Forrester IT Spending Predictions
Gartner released its revised predictions for the global downturn in IT spending; its worse than expected. Gartner updated its research findings to predict a 6% decrease in global IT spending compared with an early 3% prediction. Gartner says the sharper decline is because of an overall economic lag, changes in exchange rates and a global decrease in Gross Domestic Product.
$3.2 trillion is expected to be invested in IT spending this year compared with $3.4 trillion in 2008, according to the Gartner study. Computer hardware spending is expected to be hit hardest by the recession with a 16% decline. IT services and telecommunication spending will decline at 5.6% and 4.6% respectively. The software industry is expected to grow, but at a slower rate in 2009.
Gartner’s findings should be compared with Forrester’s research released a few weeks ago. Forrester updated its 2009 predictions to say that global IT spending is expected to fall 10%, compared with its original 3% prediction. Forrester agreed with Gartner in that hardware will be hit hardest in 2009, but that outsourcing spending will decrease, but at a slower rate than other areas studied. Forrester also determined that US IT spending will drop 5% this year when compared with 2008.
Bottom Line: Every area of IT has been effected by the global recession, the hardware industry having the most to loose.
On the bright side: Forrester predicts US IT spending to grow in the fourth quarter and both research companies predict a global IT spending increase in 2010.
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