Monday, July 19, 2010

IT spending increases worldwide

As an IT consulting firm, we at The TNS Group, have been watching the amount of IT spending being made each year. Currently, there is a forecasted 3.9% increase in worldwide IT spending for the year of 2010. According to Gartner, our IT spending in 2009 was $3.225 trillion. With the 3.9% increase we will be spending $3.350 trillion this year. A reason for this increase is due to the fact of the devaluation of the euro versus the U.S. dollar. Richard Gordon, research vice president at Gartner said, “The European sovereign debt crisis is having an impact on the outlook for IT spending. The U.S. dollar has strengthened against the euro during the second quarter of 2010, and this trend will likely continue in the second half of 2010, which will put downward pressure on U.S.-dollar-denominated IT spending growth."

More specific spending matters that will increase this year include worldwide computing hardware. It’s forecast to reach $365 billion in 2010, which is up 9.1 percent from last year’s total spending. This specific sector benefits much from a healthy PC sector since it accounts for two thirds of spending in this area. Mr. Gordon added, “Consumer shipments will continue to be powered by strong mobile PC uptake, while professional shipments will be buoyed by a new replacement cycle and migration to Windows 7."

The IT spending forecast closely reflects the global economic outlook. It’s said that it is stable at the time, but vulnerable to shocks in key regions. For this reason, IT spending must be analyzed fully.

Tara McKenna

 

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