Gartner Says Worldwide IT Spending to Surpass $3 Trillion in 2007

Analysts Examine How IT Can Drive Business Growth During the Gartner Symposium/ITxpo, October 7-12, in Orlando

STAMFORD, Conn., October 8, 2007 — 2007 is on pace to be a milestone year for the IT industry, as worldwide IT spending is projected to surpass $3 trillion, according to Gartner, Inc. IT spending in 2007 will reach $3.1 trillion in 2007, an 8 percent increase from last year, and spending for 2008 is forecast grow 5.5 percent and total $3.3 trillion. 

During the opening keynote today at Gartner Symposium/ITxpo, being held here through October 12, Gartner outlined how IT leaders must be able to respond to change quicker than ever before. There is a need for flexibility, and a need for agility.

Peter Sondergaard, senior vice president and global head of Research at Gartner, said IT leaders should create two IT budgets for 2008. The first should reflect the same kind of marginal growth prepared during the past six years. The second budget should assume the need to cut costs in response to the arrival of a possible recession.

“The business plans that you had in June are probably not going to completely address the changed conditions of your business in November,” Mr. Sondergaard told an audience of 6,000 IT decision makers. “Together with your business colleagues and your CEO you are going to have to deliver new efficiencies, new innovations and new ideas to sustain profitability and growth. IT will be core to many of those responses.”

The challenge for IT leaders is how they are going to react.

“Simply delivering internally focused savings isn’t going to be enough,” Mr. Sondergaard said. “You (IT leaders) need to step up to the challenge of delivering new solutions to those critical business imperatives.”

On a worldwide basis, IT spending continues to grow at a rapid pace in developing countries. In fact, one-third of IT spending now occurs outside of North America, Western Europe, and Japan. This development will create new innovation in IT, new competitors, new usage patterns, and continued cost improvement benefits for users,” Mr. Sondergaard said.

As IT moves East and South, it will mostly affect the growing areas of the industry. End-user spending will globally move towards software, services, and all aspects of mobility. These categories made up 57 percent of spending in 2006, will become 60 percent in 2008, and are forecast to have grown to 63 percent in 2011. 

About Gartner Symposium/ITxpo
Symposium/ITxpo is the industry’s largest and most strategic conference for senior IT and business professions. More than 6,000 senior business and IT strategists from virtually all major industries will gather to gain the latest advice on the biggest challenge: driving profits and performance with IT. Gartner's annual Symposium/ITxpo events are key components of attendees’ annual planning efforts. They rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency. Additional information is available at www.gartner.com/symposium/us.

Contact:


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