Global IT spending to grow 5.1% in 2011: Gartner

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Press Trust of India Bangalore
Last Updated : Jan 20 2013 | 7:32 PM IST

According to the latest outlook by IT research and advisory firm Gartner Inc global IT spending is forecast to a total of $3.6 trillion in 2011, a 5.1 per cent increase from the previous calendar year.

In 2010, worldwide IT spending amounted to $3.4 trillion, a 5.4 per cent increase from 2009.

Gartner has raised its outlook for 2011 global IT spending from its previous forecast of 3.5 per cent growth. In 2010, the IT industry performed better than Gartner's previous forecast of 3.2 per cent growth.

Gartner analysts said currency exchange rate fluctuations have continued to affect the US dollar-denominated forecast. Of the 2.2 percentage point increase in IT spending growth in 2010, 1.6 per cent is attributable to the recent devaluation of the US dollar against other currencies.

The telecom equipment market is poised for the strongest growth in 2011, with worldwide telecom equipment spending forecast to grow 9.1 per cent.

Strong sales of mobile devices in the third quarter of 2010, driven by smartphones in mature markets and white box devices in emerging markets, as well as stronger local currencies, resulted in an upward revision of Gartner's forecast.

The computing hardware segment is forecast to grow 7.5 per cent in 2011, but Gartner analysts said vendors face possible challenges, particularly in the area of PC growth, due to weak economic development through the first half of 2011.

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First Published: Jan 06 2011 | 4:11 PM IST

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