Worldwide enterprise IT spending across all industry markets will grow 2,9% in 2010 and surpass $2,4-trillion, according to Gartner.
Analysts says that all industries are continuing to return to growth after a challenging year in 2009, when IT spending by vertical market totalled $2,3-trillion, a 5,9% decline from 2008.
“The enterprise IT market will certainly return to growth in 2010, but we now expect it will grow by only 2,9% globally, down from the 4,1% growth we had forecast earlier this year,” says Kenneth Brant, research director at Gartner. “The national and international government sector will experience the strongest growth rate in 2010, with IT spending growing 4% in 2010."
Utilities, at 4,7%, and national governments, at 4%, will see the biggest growth.
Gartner recommends that technology and service providers target high-growth industry segments through 2014, as well as undertaking further analysis of large, slow-growth segments for unusual growth opportunities at the sub-industry segment level. However, Brant advised technology providers to exercise caution with regard to the economy and its impacts on enterprise IT markets.
"We're advising our technology provider clients to prepare business plans for 2011 on the basis of our most-likely scenario for enterprise IT spending growth – 3,5%. However, they should act now to develop contingencies to mitigate the risk of zero growth in 2011, a scenario that carries a lower probability but a much higher potential impact," says Brant.
"The bottom line is that technology providers need to be prepared for the worst case, where commercial IT markets stagnate and governments transition to fiscal austerity programmes."
Brant also urges technology providers to continue to promote IT solutions that deliver "cost optimisation" through 2011, which he contends will be a persistent and overriding value for IT buyers even as markets return to growth.