Gartner Says Worldwide Enterprise IT Spending on Pace to Grow 2.9 Percent in 2010
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Hong Kong Worldwide enterprise IT spending across all industry markets will grow 2.9 percent in 2010 and surpass US$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 US$2.3 trillion, a 5.9 percent decline from 2008.
In Asia Pacific, IT spending is expected to reach US$290 billion in 2010, up 10 percent over 2009, when IT spending across all vertical markets totaled US$264 billion, a decline of 1.4 percent over 2008 levels. The healthcare sector is forecast to register the strongest IT spending growth in the Asia Pacific region at 15.3 percent.
The global 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. The utilities and national and international government sectors will experience the strongest growth rate in 2010, with IT spending growing 4 percent in 2010 (see Table 1).
Table 1: IT Spending by Industry Vertical Market, Worldwide (Millions of U.S. Dollars)
(Please open the attachment to view the table)
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, 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."
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.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner 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 60,000 clients in 10,800 distinct organizations. 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, U.S.A., and has 4,300 associates, including 1,200 research analysts and consultants, and clients in 80 countries. For more information, visit
gartner.com.
# # #
Issued on behalf of Gartner
by EBA Communications Ltd
For further information please contact:
Martina Kong (EBA): (852) 2537 8022
(email: martina.kong@ebacomms.com)
Note to editors: this release can also be found on the EBA Web site at
www.ebacomms.com For enquiries on releases by email, please call Jennifer
Tang at (852) 2537 8022 or send a message to jennifer.tang@ebacomms.com
Press release distribution and press release services by EmailWire.Com:
http://www.emailwire.com/press_release_distribution_lists.php .
Hong Kong Worldwide enterprise IT spending across all industry markets will grow 2.9 percent in 2010 and surpass US$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 US$2.3 trillion, a 5.9 percent decline from 2008.
In Asia Pacific, IT spending is expected to reach US$290 billion in 2010, up 10 percent over 2009, when IT spending across all vertical markets totaled US$264 billion, a decline of 1.4 percent over 2008 levels. The healthcare sector is forecast to register the strongest IT spending growth in the Asia Pacific region at 15.3 percent.
The global 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. The utilities and national and international government sectors will experience the strongest growth rate in 2010, with IT spending growing 4 percent in 2010 (see Table 1).
Table 1: IT Spending by Industry Vertical Market, Worldwide (Millions of U.S. Dollars)
(Please open the attachment to view the table)
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, 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."
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.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner 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 60,000 clients in 10,800 distinct organizations. 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, U.S.A., and has 4,300 associates, including 1,200 research analysts and consultants, and clients in 80 countries. For more information, visit
gartner.com.
# # #
Issued on behalf of Gartner
by EBA Communications Ltd
For further information please contact:
Martina Kong (EBA): (852) 2537 8022
(email: martina.kong@ebacomms.com)
Note to editors: this release can also be found on the EBA Web site at
www.ebacomms.com For enquiries on releases by email, please call Jennifer
Tang at (852) 2537 8022 or send a message to jennifer.tang@ebacomms.com
Press release distribution and press release services by EmailWire.Com:
http://www.emailwire.com/press_release_distribution_lists.php .
Contact Information:
Gartner
Martina Kong
Tel: (852) 2537 8022
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Gartner
Martina Kong
Tel: (852) 2537 8022
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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