Surprising rise in global IT spend

4 April 2011
Little to differentiate between purchasing technology vendors
'Get radical on IT procurement,' Gartner advises governments
Technology works only when buyers and finance get together, says Gartner researcher
Understanding of web-based software ‘needs to keep up with increase in use’
Scepticism over end of big government IT deals

4 April 2011 | Angeline Albert 

IT spend will increase more than previously expected, according to research from Gartner.

Worldwide commercial IT spend will total $3.6 trillion (£2.23 trillion) in 2011, a 5.6 per cent increase on last year, the research analyst said.

The figure is well above Gartner’s previous forecast of 5.1 per cent growth. It has added media tablet devices, such as the iPad, to its computing hardware spending estimates beginning this quarter. Worldwide spending on tablets is projected to reach $29.4 billion (£18.2 billion) in 2011, up from $9.6 billion (£5.9 billion) in 2010.

“The addition of media tablets, reinforced by an expected additional decline in the value of the dollar, accounts for the increase in topline growth,” said Richard Gordon, research vice-president at Gartner.

The company said this stable forecast outlook comes despite political unrest in the Middle East. The impact on IT markets of recent natural disasters in Japan is yet to be fully understood, it said.

“The Middle East share of global IT spending is approximately 2 per cent. While the political unrest affecting many countries in the region may well dent IT spending levels, any impact would be insignificant at the global level,” Gordon said.

Referring to Japan’s natural disasters, he added: “We are still evaluating their likely impact on our forecast. On this point, we are looking at two potential effects on IT markets as a result of the earthquake and tsunami in Japan: consequences of disruptions in the global electronics supply chain; and impacts on IT demand.”

As reported by SM, supply shortages of electronics and other high-tech components are expected as a result of events in Japan.

Birmingham, West Midlands
HS2 Ltd
London (Greater)
£50,800 plus up to £10,000 Recruitment Retention Allowance
House of Lords
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates