IT Spending to Grow 5.3 Percent in 2010

April 19, 2010 -- Worldwide IT spending is forecast to reach $3.4 trillion in 2010, a 5.3 percent increase from IT spending of $3.2 trillion in 2009, according to Gartner Inc. The IT industry will continue to show steady growth with IT spending in 2011 projected to surpass $3.5 trillion, a 4.2 percent increase from 2010.

"Following strong fourth quarter sales, an unseasonably robust hardware supply chain in the first quarter of 2010, combined with continued improvement in the global economy, sets up 2010 for solid IT spending growth," says Richard Gordon, research vice president at Gartner.

 

Software Spending
Worldwide software spending is expected to total $232 billion in 2010, a 5.1 percent increase from last year. Gartner analysts said the impact of the recession on the software industry was tempered and not as dramatic as other IT markets.

The infrastructure market, which includes all the software to build, run and manage an enterprise, is the largest segment in terms of revenue and the fastest-growing through 2014. The hottest software segments through 2014 include virtualization, security, data integration/data quality and business intelligence. The applications market, which includes personal productivity and packaged enterprise applications, has some of the fastest-growth segments. Web conferencing, team collaboration and enterprise content management are forecast to have double-digit compound annual growth rates in the face of growing competition surrounding social networking and content.

Hardware Spending
Worldwide computing hardware spending is forecast to reach $353 billion in 2010, a 5.7 percent increase from 2009. Robust consumer spending on mobile PCs will drive hardware spending in 2010. Meanwhile, enterprise hardware spending will grow again in 2010, but it will remain below its 2008 level through 2014. Spending on storage will enjoy the fastest growth in terms of enterprise spending as the volume of enterprise data that needs to be stored continues to increase. Near-term spending on servers will be concentrated on lower-end servers; longer-term, server spending will be curtailed by virtualization, consolidation and, potentially, cloud computing.

"Computing hardware suffered the steepest spending decline of the four major IT spending category segments in 2009. However, it is now forecast to enjoy the joint strongest rebound in 2010," says George Shiffler, research director at Gartner.

IT Services Spending
The worldwide IT services industry is forecast to have spending reach $821 billion in 2010, up 5.7 percent from 2009. The industry experienced some growth in reported outsourcing revenue at the close of 2009, an encouraging sign for service providers, which Gartner analysts believe will spread to consulting and system integration in 2010.

Telecom Spending
Worldwide telecom spending is on pace to total close to $2 trillion in 2010, a 5.1 percent increase from 2009. Between 2010 and 2014, the mobile device share of the telecom market is expected to increase from 11 percent to 14 percent, while the service share drops from 80 percent to 77 percent and the infrastructure share remains stable at 9 percent of the total market.

Worldwide enterprise network services spending is forecast to grow 2 percent in revenue in 2010, but Gartner analysts said this masks ongoing declines in Europe and many other mature markets as well as an essentially flat North American market.