STAMFORD, Conn., August 10, 2010 View All Press Releases

Gartner Says Worldwide Enterprise IT Spending on Pace to Grow 2.9 Percent in 2010

   Worldwide enterprise IT spending across all industry markets will grow 2.9 percent in 2010 and surpass $2.4 trillion, according to Gartner, Inc. Analysts said that all industries are continuing to return to growth after a challenging year in 2009, when IT spending by vertical market totaled $2.3 trillion, a 5.9 percent decline from 2008.

“The enterprise IT market will certainly return to growth in 2010, but we now expect it will grow by only 2.9 percent globally, down from 4.1 percent growth we had forecast earlier this year,” said Kenneth Brant, research director at Gartner. “Utilities and the national and international government sectors will experience the strongest growth rates in 2010, with IT spending growing 4.7 and 4 percent respectively in 2010 (see Table 1).”

Table 1
IT Spending by Industry Vertical Market, Worldwide (Millions of Dollars)

Industry	Total IT   Spending   2010	Total IT   Spending   2009	2009-2010    Growth (%)
Banking and Securities	390,488	379,855	2.8
Communications Media and Services	392,506	378,750	3.6
Education	64,148	62,607	2.5
Healthcare	88,996	86,215	3.2
Insurance	159,926	156,573	2.1
Local and Regional Government	179,664	176,747	1.7
Manufacturing and Natural Resources	426,085	415,480	2.6
National and International Government	244,410	235,086	4.0
Retail	146,239	142,420	2.7
Transportation	105,703	103,689	1.9
Utilities	125,583	119,927	4.7
Wholesale Trade	83,315	81,196	2.6
Total	2,407,063	2,338,544	2.9

Source: Gartner (August 2010)

Gartner recommends that technology and service providers target high-growth industry segments through 2014, as well as undertaking further analysis of large, slow-growth segments for unusual growth opportunities at the subindustry segment level. However, Mr. Brant advised technology providers to exercise caution with regard to the economy and its impacts on enterprise IT markets.

"We're advising our technology provider clients to prepare business plans for 2011 on the basis of our most-likely scenario for enterprise IT spending growth — 3.5 percent. However, they should act now to develop contingencies to mitigate the risk of zero growth in 2011, a scenario that carries a lower probability but a much-higher potential impact," Mr. Brant said. "The bottom line is that technology providers need to be prepared for the worst case, where commercial IT markets stagnate and governments transition to fiscal austerity programs." Furthermore, Mr. Brant urged technology providers to continue to promote IT solutions that deliver "cost optimization" through 2011, which he contends will be a persistent and overriding value for IT buyers even as markets return to growth.

Additional information is available in the report "Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2008-2014, 2Q10 Update." The report is available on Gartner's website at http://www.gartner.com/resId=1412539.

Contacts

• Christy Pettey
• Gartner
• +1 408 468 8318
• christy.pettey@gartner.com

• Laurence Goasduff
• Gartner
• +44 1784 267195
• laurence.goasduff@gartner.com

About Gartner

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