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Gartner trims global IT spend forecast on Europe woes

Gartner trims global IT spend forecast on Europe woes
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First Published: Thu, Jul 01 2010. 02 43 PM IST
Updated: Thu, Jul 01 2010. 02 43 PM IST
Mumbai: Global spending on technology in 2010 is likely to be lower than previously estimated because of the European debt crisis and the weakening of the euro against the dollar, research firm Gartner said on Thursday.
Gartner now expects this year’s IT spending to total $3.35 trillion, growing 3.9% over last year, compared with its earlier forecast for a 5.3% growth.
“The European sovereign debt crisis is having an impact on the outlook for IT spending,” Richard Gordon, Gartner’s research vice president, said in a note.
The dollar’s rise against the euro in the second quarter was likely to continue in the second half of the year as well, pressuring dollar denominated IT spending growth, he added.
Longer term, public sector spending in Europe would be curtailed as governments battle rising budget deficits and debt over the next 5-10 years, Gordon said.
“Private-sector economic activity will also likely be hindered because of the direct impact of austerity measures on key government suppliers and the indirect impact caused by the ‘ripple effect,” he said.
Spending on IT services would likely rise 2.9% to $786 billion, while software would show a 3.1% increase to $229 billion, Gartner said.
Global spending on computing hardware was likely to rise 9.1% to $364 billion, as Gartner expects personal computer shipments to remain robust in 2010 and 2011.
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First Published: Thu, Jul 01 2010. 02 43 PM IST