Decline more severe than forecast just 3 months ago
Gartner has revised down since last quarter its estimates for worldwide IT spending in 2009, which it now expects to slide by 6%.
In March of this year, Gartner had forecast 2009 worldwide IT spending would decline by no more than 3.8%. Today the market-watchers have said spending will be running at levels which should tally $3.2 trillion by year end, down on last year’s numbers of $3.4 trillion.
Continued weak IT spending because of the economic situation combined with the effect of exchange rate movements are to blame.
“The forecast decline in spending growth for the hardware and software segments in 2009 has almost stabilised, and only minor downward revisions have been made to these forecasts this quarter,” Gartner said.
“The full impact of the global recession on the IT services and telecommunications sectors is still emerging, and the rise in the value of the US dollar against most currencies in recent months will have a material downward impact.”
Hardware will experience the steepest decline in 2009, with spending projected to decline by 16.3%, software will drop 1.6%, services will fall by 5.6% and telecoms spending will reduce by 4.6% the analyst house has predicted.