IT spending in Europe has bottomed out, and the beginnings of a gradual recovery are already appearing, according to IDC's monthly index of technology expenditure across Western Europe.
The analyst firm has increased its 2002 growth forecast for annual IT spending in Western Europe from 6.4 per cent in January to 6.6 per cent in its February update.
This marks a recovery from growth of five per cent during 2001, and the growth will accelerate to nine per cent in 2003, in line with overall economic recovery.
"The myth that over-spending on IT, the so-called bubble, will deflate IT demand for the next two years, will be put to rest as the economy recovers," said Stephen Minton, director of IDC's European IT markets centre.
"Continued innovation, new technology platforms, clear return on investment on technology spending, wireless broadband roll-out and centrality of ebusiness to the wider economy. These things will make increases in IT spending an unstoppable force."
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