Global IT industry to return to growth in 2010

The industry will return to growth next year

Global IT spending should return to growth in 2010 for the first time since the recession, a Gartner report said today.

The report forecast that worldwide IT spending will reach $3.4tn (£2.1tn) in 2010, a 4.6 per cent increase from 2009, where worldwide spending fell 4.6 per cent from the previous year.

"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 spend this year will approach the level seen in 2008," said Richard Gordon, research vice president at Gartner.

All major segments – computing hardware, software, IT services, telecom and telecom services – are expected to grow in 2010.

But Gartner predicts the biggest growth drivers to be IT services at 5.6 per cent, followed by software at 4.9 per cent and telecoms at 4.6 per cent.

IT spending growth in emerging markets 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 seven per cent in Asia-Pacific.

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 by 1.8 per cent.

A recent Gartner survey of 1,586 CIOs, representing more than $126bn in corporate and public-sector IT spending, showed worldwide IT budgets in 2010 increasing by a weighted global average of 1.3 per cent in nominal terms compared with 2009.