Gartner Says Worldwide IT Spending on Pace to Decline 6 Percent in 2009

Latest Forecast Shows Spending Declines Across Hardware, Software, IT Services and Telecommunications Sectors

STAMFORD, Conn., July 7, 2009 —

Worldwide IT spending is on pace to total $3.2 trillion in 2009, a 6 percent decline from 2008 spending of $3.4 trillion, according to Gartner, Inc. Continued weak IT spending because of the economic situation combined with the effect of exchange rate movements has resulted in Gartner lowering its 2009 forecast from its 1Q09 projection. In March of this year, Gartner had forecast 2009 IT spending to decline 3.8 percent. 

"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 Richard Gordon, research vice president and head of global forecasting at Gartner.

"The forecast decline in spending growth for the hardware and software segments in 2009 has almost stabilized, and only minor downward revisions have been made to these forecasts this quarter," Mr. Gordon said. "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. Moreover, the rise in the value of the U.S. dollar against most currencies in recent months will have a material downward impact on 2009 IT spending growth, which by convention we report based on U.S. dollars."

All four major segments of IT — hardware, software, IT services and telecommunications — will experience declining revenue (see Table 1), something that did not happen in the 2001 downturn. The computing hardware segment will experience the steepest decline in 2009, with spending projected to decline 16.3 percent. The software segment will show the slightest decrease in 2009, with spending forecast to drop 1.6 percent.

Table 1
Worldwide IT Spending Forecast (Billions of U.S. Dollars)

	2008 Spending	2009 Spending	2010 Spending
Computing Hardware	379.5	317.8	317.7
Annual Growth (%)	2.5	-16.3	0.0
Software	221.9	218.3	225.3
Annual Growth (%)	10.3	-1.6	3.2
IT Services	805.9	761.0	784.0
Annual Growth (%)	8.2	-5.6	3.0
Telecom	1,945.2	1,855.9	1,898.7
Annual Growth (%)	5.7	-4.6	2.3
All IT	3,352.5	3,152.9	3,225.7
Annual Growth (%)	6.2	-6.0	2.3

Source: Gartner (June 2009)

Additional information is available in the Gartner report "Gartner Dataquest Market Databook, June 2009 Update." The report provides detailed regional data for worldwide IT spending through 2013. The report is on the Gartner Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=1052412&subref=simplesearch.

Contacts:


Christy Pettey
Gartner
+1 408 468 8312
christy.pettey@gartner.com

Holly Stevens
Gartner
+44 0 1784 267412
holly.stevens@gartner.com


About Gartner:
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit www.gartner.com.