IT spend is set to break through the $2.4 trillion (1.5 trillion) mark in 2010, according to a new report released today.
Analyst firm Gartner has claimed IT spending across all industry markets will grow by an average of 2.9 per cent this year to reach that amount. However, it has admitted this is much lower than its previous forecast.
"The enterprise IT market will certainly return to growth in 2010, but we now expect it will grow by only 2.9 per cent globally, down from 4.1 per cent growth we had forecast earlier this year," said Kenneth Brant, research director at Gartner.
Brant claimed the best growth would come in the national and international government sectors an expectation of four per cent in 2010 but local and regional governments were only likely to grow by 1.7 per cent.
Gartner has recommended technology companies and service providers should target the high growth industries over the next four years, such as government, utilities expected growth of 4.7 per cent and communications, media and services expected growth of 3.6 per cent.
"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 per cent," added Brant.
"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."
He concluded: "The bottom line is that technology providers need to be prepared for the worst case, where commercial IT markets stagnate and government transitions to fiscal austerity programmes."
