IT spending to recover by 3.3 per cent in 2010

This has been the worst year of IT spending ever, with a fall of 5.2 per cent, according to analyst Gartner.

Corporate IT spending is set to fall a further 6.9 per cent, but the IT industry will recover next year, with spending growing 3.3 per cent to $3.3 trillion.

Don't break out the champagne just yet, as that growth is on 2009 - the worst year ever. "While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012," said Peter Sondergaard, senior vice president at Gartner, in a statement.

"2010 is about balancing the focus on cost, risk, and growth. For more than 50 per cent of CIOs the IT budget will be zero per cent or less in growth terms. It will only slowly improve in 2011," he added.

Hardware spending will be flat next year. But that is still an improvement on this year's 16.5 per cent decline. Telecom spending will grow 3.2 per cent, above this year's four per cent fall, while IT services will grow 4.5 per cent next year and spending on software will climb 4.8 per cent.

Emerging countries will be the first to see strong growth, Gartner claimed. "By 2012, the accelerated IT spending and culturally different approach to IT in these economies will directly influence product features, service structures, and the overall IT industry," Sondergaard said. "Silicon Valley will not be in the driver's seat anymore."