IT spending set to rebound...somewhat
The IT industry will return to growth in 2010 with an estimated 3.3 percent per increase over 2009 - the worst year in history for the industry. And in the Asia Pacific region, the news is even better with a 5 percent improvement predicted.
According to Gartner, 2009 saw worldwide IT spending decline by 5.2 per cent. The decline was so dramatic, that Gartner is predicting it will take two to three years before the IT sector gains back all of that ground.
"While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of CIOs the IT budget will be 0 percent or less in growth terms. It will only slowly improve in 2011.”
While the overall industry is set to grow by more than three per cent, pace will be accelerated in Asia Pacific and other emerging markets.
“Emerging regions will resume strong growth,” Sondergaard said. “By 2012, the accelerated IT spending and culturally different approach to IT in Asia will directly influence product features, service structures and the overall IT industry. Silicon Valley will not be in the driver’s seat anymore.”
However, growth varies considerably by country, vertical market and IT sector. Mr. Sondergaard said that while software would post the strongest growth in Asia Pacific, telecommunications still represented the largest area of IT investment.
Asia Pacific End-User Spending on IT by Technology Segment in 2010 (US$ millions)
According to Gartner, 2009 saw worldwide IT spending decline by 5.2 per cent. The decline was so dramatic, that Gartner is predicting it will take two to three years before the IT sector gains back all of that ground.
"While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of CIOs the IT budget will be 0 percent or less in growth terms. It will only slowly improve in 2011.”
While the overall industry is set to grow by more than three per cent, pace will be accelerated in Asia Pacific and other emerging markets.
“Emerging regions will resume strong growth,” Sondergaard said. “By 2012, the accelerated IT spending and culturally different approach to IT in Asia will directly influence product features, service structures and the overall IT industry. Silicon Valley will not be in the driver’s seat anymore.”
However, growth varies considerably by country, vertical market and IT sector. Mr. Sondergaard said that while software would post the strongest growth in Asia Pacific, telecommunications still represented the largest area of IT investment.
Asia Pacific End-User Spending on IT by Technology Segment in 2010 (US$ millions)
- Computing Hardware - Up 4.7% to 71,717m
- Software - Up 10.2% to 22,148m
- IT Services - Up 9.3% to 56,935
- Telecommunications - Up 4.2% to 364,841m
- Asia Pacific Total - Up 5.06% to 515,642m
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