Global IT spending set to rise 5.1 per cent in 2011

Gartner reveals expectations for the year ahead

Global IT spend is expected to total $3.6tn (£2.3tn) in 2011, marking a 5.1 per cent increase from 2010, according to the latest figures released by analyst firm Gartner.

In 2010, worldwide IT spending totaled $3.4tn, a 5.4 per cent rise from 2009.

The research firm has raised its expectations for worldwide IT spend in 2011 from its previous forecast of 3.5 per cent growth, following a better-than-expected performance by the IT industry in 2010.

"Aided by favourable US dollar exchange rates, global IT spending growth is expected to exceed 5 per cent in 2010, but a similar level of growth in 2011 – while forecast – is far from certain, given continued macroeconomic uncertainty," said Richard Gordon, research vice president at Gartner.

"While the global economic situation is improving, the recovery is slow and hampered by a sluggish growth outlook in the important mature economies of the US and Western Europe. There are also growing concerns about the ability of key emerging economies to sustain relatively high growth rates.

"Nevertheless, as well as being a fundamental enabler of cost reduction and optimisation, investment in IT is seen increasingly as an important element in business growth strategies. As the global economy repairs itself in coming years, we are optimistic about continued healthy spending on IT."

The area expecting the strongest growth is the telecom equipment market, with worldwide spending forecast to grow 9.1 per cent. Strong sales of mobile devices in the third quarter of 2010, driven by smartphones in mature markets and white box devices in emerging markets, as well as stronger local currencies, resulted in an upward revision of Gartner's forecast.