IT spending to rise 4.6% in 2010, say Gartner

News Article - 12 February 2010
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Recent research by business analyst Gartner reveals the IT industry will benefit from a global 4.6% rise in spending in 2010. The increase will bring spending levels to $3.4tn, ahead of Gartner's previous prediction that 2008 spending levels would not be reached until 2011. Worldwide spending in 2009 dropped 4.6% from 2008.

Although the increase has been labeled 'modest', it will come as a welcome surprise for the IT industry. Gains will affect most of the largest sectors, including hardware, software and telecommunications. Emerging markets are expected to lead both short and long-term gains, with spending rise predictions of 9.3% in Latin America and 7% in Asian Pacific nations.

Western economics are expected to see less rapid growth; 2.5% in the US and 5.1% in Western Europe. Whilst improved economic conditions will be partly responsible for the gains, exchange rates will have a dramatic affect on spending over the following year. Gartner say their predictions are heavily based on the expected decline of the US dollar.

As the outlook for the IT industry improves, businesses may face favourable conditions over the coming months and into the latter half of 2010. Following a difficult 2009, many companies are expected to aggressively pursue growth strategies and push forward with expansion plans to take advantage of newly freed resources. Particularly at the mid-market level, businesses may face tough competition for market share as spending increases and consumers get more confident.

Without a robust and scalable infrastructure, organisations may find it difficult to adapt to changing market conditions. Recession-hit firms will inevitably take more time to get back on track, yet difficulties adapting may severely affect profitability and expansion as other companies rush to take advantage of resources. Businesses must ensure a strong infrastructure is in place to handle rapidly changing market conditions, ensuring easier adaptability to changes such as increased demand.

Access can advise companies on the ways a dedicated business software solution can facilitate company-wide adaptability as market conditions improve and competition for market share increases. For more information, please call 0800 345 3300.

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