Gartner slashes IT spending forecast

Gartner has slashed its IT growth forecasts for 2009 as it admitted the full impact of the recession on IT spending is only just becoming clear.

The market watcher now expects global IT spending to fall six per cent to $3.2tn (£2tn). This compares to its previous forecast in March of a 3.8 per cent decline.

In contrast to the 2001 downturn, all four major IT segments – hardware, software, IT services and telecommunications – are set to suffer revenue declines.

Computing hardware will be the hardest hit with spending forecast to plunge 16.3 per cent to $317.8bn. Software is set to fall just 1.6 per cent to $218.3bn, while telecoms and IT services are expected to slip back 4.6 per cent and 5.6 per cent respectively.

Richard Gordon, research vice president and head of global forecasting at Gartner, said the full impact of the global recession on the IT services and telecommunications sectors is still emerging.

“While the global economic downturn shows signs of easing, this year IT budgets are still being cut and consumers will need a lot more persuading before they can feel confident enough to loosen their purse strings,” he said.

Gartner said the downgrade also reflected the dollar's recent rise in value.