Press Release

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.

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About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company 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 valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, 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, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

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