IT Spending Set To Grow 3.2% In 2010

December 04, 2009

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IT Spending Set To Grow 3.2% In 2010

With a global economic recovery widely anticipated, modest growth in IT and telecommunications spending is expected in 2010, according to a new report from IDC.

"In last year's predictions, we talked about how a slow global economy would act like a pressure cooker on the IT market, speeding the development and adoption of new technologies and business models," said Frank Gens, senior vice president and chief analyst at IDC.

"What's different about 2010 is that the economic recovery will release some of the pressure on spending, enabling a number of transformational tipping points to be reached in a year of economic upswing."

In terms of the recovery, IDC predicts worldwide IT spending will grow by 3.2 percent in 2010, returning the industry to 2008 spending levels of about $1.5 trillion. In broad terms, hardware, software and services spending will each grow in the 2-4 percent range, with hardware experiencing the most notable gains after a difficult 2009.

Emerging markets will drive more than half of the new IT industry growth in 2010, with IT spending up 8-13 percent in Brazil, Russia, India, and China. Telecommunications spending will experience respectable growth of 3%, driven by a rebound in the IP and data segments in mature markets and strong growth in the mobility sector in emerging economies.

Mobile devices will also have a powerful transformational force on the industry as they increasingly compete with PCs as the primary client platform for developers and users alike. By year end, IDC expects more than 1 billion mobile devices will be accessing the Internet, boosted by the growing popularity of smartphones and the arrival of Apple's iPad tablet computer. And the growth in mobile devices will ignite an explosion in mobile applications...

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