IT spending reaches a new record high – up 8%
Despite the gloom over the world economy and credit issues facing banks and consumers, worldwide IT spending will pass the $3.4tr mark this year, up eight per cent from last year, according to analyst Gartner.
Services, not products, now dominate spending, with IT and telecoms services making up 70 per cent of IT budgets – with telecoms alone accounting for almost $2tr of that.
Gartner VP Jim Tully said in the report “The US-led economic downturn shows no sign of causing a recession in IT spending. Emerging regions, replacement of obsolete systems and some technology shifts are driving growth. Organisations are switching from company-owned hardware and software assets to per-use service based models. The projected shift to cloud computing, for example, will result in dramatic growth in IT products in some areas, and in significant reductions in other areas.”
The report shows that software spending is on course for the strongest growth rate in 2008 at more than 10 per cent, while services spending will surpass 9.4 per cent growth.
Derrick Cameron MD of IT firm Eximium comments “Many companies are in the process of upgrading their old software systems. It is a constant process, in a similar way to staff training. You are never ‘done’ as there is always more to do.”
The main area of hardware growth activity is PCs, which accounts for 60 per cent of total hardware spending, increasing significantly in Asia-Pacific and Western Europe.
A strong shift towards mobile PCs is also occurring, boosting the overall market, as the higher prices of these products results in increasing revenue per unit.
This entry was posted on Wednesday, December 10th, 2008 at 10:38 am and is filed under Business Advice, IT Advice, News . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
