No Need to Panic—Yet
IT’S EVEN WORSE than expected.
Worldwide IT spending will grow just 0.5 percent in 2009, according to research company IDC.
But before going into full panic mode, some
perspective may help soften the blow. There’s
still an awful lot of spending, with the market
expected to hit $1.44 trillion in 2009. And
while other sectors are hemorrhaging, IT is
actually growing, albeit not at the leaps and
bounds it once was.
Still, the news came just three short months
after IDC had already slashed its pre-crisis growth
forecast of 5. 9 percent to 2. 6 percent in November.
The shift comes in the wake of fourth quarter
data showing that companies dramatically reined
in spending in an effort to survive the crisis. IDC
predicts the greatest impact will be felt in global
hardware markets, where overall spending will
drop 3. 6 percent this year. In contrast, worldwide spending on software and IT services is
expected to grow 3. 4 percent.
“Investments in software and services are
being maintained in pursuit of productivity
and efficiency gains while hardware spending
is being slashed in an attempt to stretch
refresh cycles and squeeze more out of existing
assets,” says John Gantz, chief research officer at
IDC, Framingham, Massachusetts, USA.
DEGREES OF DAMAGE
No country is immune, although some fared
worse than others in the IDC report.
“When you think about 2009, there is not a
lot of good news,” says Stephen Minton, analyst
at IDC. “Almost everywhere in the world is hit
because of global economic reasons, although
there are relative degrees of damage.”
In the United States, IDC is forecasting a paltry
0.1 percent growth in 2009.
Western Europe is expected to see the same
measly 0.1 percent uptick. IDC predicts
Germany and the United Kingdom will likely
remain flat, and France and Italy look to post a
Estimated amount of worldwide
IT spending in 2009