Press Release

STAMFORD, Conn., January 6, 2011 View All Press Releases

Gartner Says Worldwide IT Spending to Grow 5.1 Percent in 2011

Analysts to Discuss Latest Outlook for the IT Industry During Upcoming Gartner Webinar on January 11

Worldwide IT spending is forecast to total $3.6 trillion in 2011, a 5.1 percent increase from 2010, according to the latest outlook by Gartner, Inc. In 2010, worldwide IT spending totaled $3.4 trillion, up 5.4 percent from 2009 levels.

Gartner has raised its outlook for 2011 global IT spending from its previous forecast of 3.5 percent growth. In 2010, the IT industry performed better than Gartner's previous forecast of 3.2 percent growth. Gartner analysts said currency exchange rate fluctuations have continued to affect the U.S. dollar-denominated forecast. Of the 2.2 percentage point increase in IT spending growth in 2010, 1.6 percent is attributable to the recent devaluation of the U.S. dollar against other currencies.

"Aided by favorable U.S. dollar exchange rates, global IT spending growth is expected to exceed 5 percent in 2010, but a similar level of growth in 2011 — while forecast — is far from certain, given continued macroeconomic uncertainty," said Richard Gordon, research vice president at Gartner. "While the global economic situation is improving, the recovery is slow and hampered by a sluggish growth outlook in the important mature economies of the U.S. and Western Europe. There are also growing concerns about the ability of key emerging economies to sustain relatively high growth rates. Nevertheless, as well as a fundamental enabler of cost reduction and cost optimization, investment in IT is seen increasingly as an important element in business growth strategies. As the global economy repairs itself in coming years, we are optimistic about continued healthy spending on IT."

The telecom equipment market is poised for the strongest growth in 2011, with worldwide telecom equipment spending forecast to grow 9.1 percent (see Table 1). Strong sales of mobile devices in the third quarter of 2010, driven by smartphones in mature markets and white box devices in emerging markets, as well as stronger local currencies, resulted in an upward revision of Gartner's forecast.

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

 

2010

Spending

2010

Growth (%)

2011

Spending

2011

Growth (%)

Computing Hardware

364.1

8.9

391.3

7.5

Enterprise Software

235.9

6.1

253.7

7.5

IT Services

782.0

2.5

817.9

4.6

Telecom Equipment

426.6

14.0

465.4

9.1

Telecom Services

1,593.0

3.9

1,647.4

3.4

All IT

3,401.6

5.4

3,575.8

5.1

Source: Gartner (January 2010)

The computing hardware segment is forecast to grow 7.5 percent in 2011, but Gartner analysts said vendors face possible challenges, particularly in the area of PC growth, given likely weak economic growth through the first half of 2011.

More-detailed analysis on the outlook for the IT industry will be presented in the Gartner webinar "IT Spending Forecast, 4Q10 Update: 2010 Ends on the Upside." The complimentary webinar will be hosted by Gartner on January 11 at 11 a.m. Eastern time. To register for the webinar, please go to http://my.gartner.com/webinardetail/resId=1506014.

Additional information is available in the Gartner report "Forecast Alert: IT Spending, Worldwide, 4Q10 Update" at http://www.gartner.com/resId=1512016. The report provides more details on Gartner's outlook for the IT industry through 2014.

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available at http://www.gartner.com/technology/research/quarterly-it-forecast/index.jsp. This Quarterly IT Spending Forecast section includes links to the latest IT spending reports, webinars, blog posts and press releases.

 

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