Slowdown in IT spending growth hits Europe

IT spending growth in western Europe is lagging behind the rest of the world, according to Gartner.

The analyst told delegates at its Symposium/ITxpo conference in Barcelona today that IT spend in the region will increase by 3.6 per cent this year, reaching $697bn.

But global growth is forecast to hit 5.6 per cent, with total spend of $2.6tn in 2005.

Gartner vice president Roger Fulton says problems with the European economy are having a knock-on effect on IT spending.

'A general lack of confidence in the future is resulting in greater caution over spend,' he said. 'In a slow economy, organisations become more risk adverse, preferring to maintain the status quo rather than deal with and invest in change.'

Peter Sondergaard, global head of research at Gartner, says some firms are misinterpreting the IT spending slowdown as a sign that the rate of technology change is also reducing.

'With mega-issues such as Y2K and major regulatory compliance mandates behind us, many IT professionals believe that although we are currently in an era where the issues in IT are still challenging, there are no significant challenges confronting IT users and providers today,' he said.

'However, nothing could be further from truth. A series of upcoming technology and organisational changes will profoundly affect almost every major area of IT.'