Global software spending to rise in 2010

Global software spending will increase slightly next year, according to research by analyst group, Gartner.

The worldwide growth of 1.5 percent is being driven mainly by buyers in Asia Pacific and Latin America, where predicted increases in spending on software are 4.3 and 2.5 percent respectively.

North American software spend is predicted to decrease by 2.1 per cent, while in Europe a small increase of 0.45 per cent is forecast.

Software vendors should not use the current economic conditions as an excuse to scale back on their service offerings, said Gartner managing vice president Joanne Correia.

"A market downturn is a disrupter that creates great marketing and sales opportunities for organisations prepared to take advantage of the right products, marketing programs and funding," she said.

"Vendors need to be able to differentiate with key integration technologies, vertical-market and line-of-business solutions, and diversified customer bases."

Gartner said that infrastructure spending – telecoms, networks, PCs and so on – accounts for 37 percent of the IT budget.

"Savings in the infrastructure area are being used to fund 'frontier applications' that drive innovation and provide competitive edge," said Correia.

Frontier applications make major changes in business performance possible, she said.

"Such applications are becoming increasingly essential in today's competitive business environment," said Correia.

Gartner's survey polled 1,000 IT professionals globally between April and May.