Global IT Spending Projections Down Slightly For 2011

Global IT spending growth this year will be only a tad less than 2010, despite economic uncertainties heading into the new year, a market research firm says.

Businesses will spend 7.1% more on IT than they did last year, when IT spending growth rose 7.2% from 2009, Forrester Research said in its Global Tech Industry Outlook, released to media Friday. Companies are expected to spend $1.69 trillion in IT products and services this year.

The spending increase will occur despite the economic uncertainties that existed at the end of 2010, including debt worries in some countries, questions about the future of the euro in Europe, doubts about the strength of the U.S. recovery, and worries about the overheated economies and rising inflation in China and Latin America, Forrester said. While some or all of these problems could have an impact, the world economy is expected to continue growing in 2011 and 2012. Next year's growth rate is expected to increase to 8.7%.

Growth this year is expected across all IT categories, ranging from 6.2% for communications equipment to 7.4% for computer equipment and IT consulting and systems integration services. In terms of actual dollar amounts, software will be the largest category at $430 billion, with computer and communications equipment following at $362 billion and $335 billion, respectively. IT services will be fourth at $309 billion, with systems integration accounting for two-thirds of that amount. Next year will usher in some shifting in IT spending, with software expected to grow the fastest.

The regions with the highest growth rates this year will be Eastern Europe, the Middle East and Africa (considered one area), and Latin America. Spending is expected to rise by 9.8% in each region. Asia Pacific will have a growth rate of 8.5% and the U.S. 7.5%, Forrester predicted. The lowest growth rate will be Western and Central Europe, 4%, followed by Canada, 4.9%. All growth is calculated in U.S. dollars.

The same rankings are expected in 2012. All regions, except EEMEA and Asia Pacific, are expected to increase spending by about two percentage points, Forrester reported. EEMEA and Asia Pacific will have higher increases in spending.

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