Spending on information technology (IT) worldwide will grow nearly 5 percent this year as an upturn in the global economy prompts companies to spend more, a consultancy said yesterday.
All major segments from computing hardware to telecom services are expected to grow as confidence returns and more credit is made available, research and advisory services provider Gartner said.
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The 4.6 percent projected increase to US$3.4 trillion marks a “significant improvement” from last year, when worldwide IT spending declined by 4.6 percent, the global consultancy said in a note issued in Mumbai.
“Last quarter, we did not expect to see IT spending levels recover to 2008 levels until 2011,” said Richard Gordon, research vice president at Gartner.
But now, though recovery will be slow, GDP “is projected to increase, consumer confidence is expected to improve, and the availability of credit should increase,” Gordon said.
EMERGING MARKETS
“At the same time, pent-up demand for new technologies will be released as enterprises focus on new growth opportunities,” he said.
IT growth in emerging markets is expected to lead the way, with spending forecast to grow 9.3 percent in Latin America, 7.7 percent in the Middle East and Africa and 7 percent in the Asia-Pacific region. The forecast comes as India’s flagship software services companies Tata Consultancy Services, Infosys Technologies and Wipro announced forecast-beating quarterly earnings.
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