Emerging markets drive IT spending

By Guy Dixon on Feb 21, 2008 7:21 AM
Filed under Software

IT spending growth in emerging markets is nearly double that of Western economies and is becoming a major factor in GDP growth, according to Gartner..

The analyst firm said that spending in emerging markets will grow 8.5 percent year on year until 2011 compared with 4.3 percent in the developed world. The spending will stimulate economies by promoting greater efficiency.

"Current GDP growth is impacting IT spending because it offers larger financial resources," said Luis Anavitarte, research vice president at Gartner.

"This is promoting, in many cases, more-balanced development within nations with significant consumer middle-class growth, stronger business base expansion and larger demand for IT products and services beyond Tier 1 cities.

"This growing ecosystem of economics and IT also provides credibility for countries to international lenders, boosting financial resources and investments that are so critical for IT expansion."

Brazil, Russia, India and China will lead this growth, according to Gartner, and spending in those four states will make up a third of all developing world IT spend.

China and the Pacific Rim economies will show fast growth worldwide, but Africa is forecast to show the steepest growth with a compound annual growth rate of 77 percent. Latin America will also show strong growth.