Gartner raises IT spend forecast for 2011

Analyst figures predict a 5.1 per cent increase in global spend, but warned of continued uncertainty

Global IT spending is set to total $3.6 trillion in 2011, up 5.1 per cent from 2010, according to the latest Gartner figures.

The analyst has raised its outlook for 2011 after the IT industry performed better than expected in 2010.

Last year, global IT spend added up to $3.4tn, a 5.4 per cent increase from 2009.

Currency exchange rate fluctuations have continued to affect the US dollar-denominated forecast, with 1.6 per cent of the 2.2 per cent increase in growth attributable to the recent devaluation of the US dollar against other currencies.

Richard Gordon, research vice president at Gartner, said: “Aided by favourable US dollar exchange rates, global IT spending growth is expected to exceed five per cent in 2010, but a similar level of growth in 2011, while forecast, is far from certain, given continued macroeconomic uncertainty.

“While the global economic situation is improving, the recovery is slow and hampered by a sluggish growth outlook in the important mature economies of the US and Western Europe.

"There are also growing concerns about the ability of key emerging economies to sustain relatively high growth rates.”

However, he added that investment in IT increasingly is seen as an "important element in business growth strategies" and said Gartner is optimistic about continued healthy spending patterns as the global economy repairs itself.

According to Gartner, the telecom equipment market is poised for the strongest growth this year with growth of 9.1 per cent, driven by strong sales of mobile devices such as smartphones in Q3 2010.

Computing hardware is set to grow 7.5 per cent, according to Gartner’s figures, but vendors will face possible challenges, particularly in the area of PC growth due to likely weak economic growth in the first half of 2011.