Global IT spending to drop by $250bn

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Global IT spending to drop by $250bn

Hardware hardest hit by recession and exchange rates.

Global IT spending will decline by six per cent this year as a consequence of the recession and exchange rate variations, according to analyst Gartner.

Worldwide spend across hardware, software, IT services and telecommunications is set to reach US$3.2tr in 2009, down US$200bn ($250bn) from US$3.4tr in 2008, says the analyst.

Gartner notes that the decline in the four major segments of IT did not happen in the 2001 downturn.

The hardware industry will be the hardest hit according to the statistics, with a projected spending slump of 16.3 per cent. By comparison, the software segment will see a slight decline of 1.6 per cent.

"While the global economic downturn shows signs of easing, this year IT budgets are still being cut and consumers will need a lot more persuading before they can feel confident enough to loosen their purse strings," said Gartner’s research vice president and head of global forecasting, Richard Gordon.

"The forecast decline in spending growth for the hardware and software segments in 2009 has almost stabilised, and only minor downward revisions have been made to these forecasts this quarter," said Gordon.

"However, the full impact of the global recession on the IT services and telecommunications sectors is still emerging, and forecast growth in these areas has been further reduced significantly,” he said.

“Moreover, the rise in the value of the US dollar against most currencies in recent months will have a material downward impact on 2009 global IT spending growth."

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