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Global IT Spending for 2012 Seen Decelerating

by: Sarah Joson

Thursday, September 13, 2012 | Outsourcing News |

With financial challenges like the crisis in Europe and slow recovery of economies worldwide, global IT spending is anticipated to get stifled in different levels.    

2012 Global IT Spending

An IDC analyst said smartphones, tablets, storage technology, software, and networking products are the main key drivers of IT spending, which should increase six percent from 2011 to $2.1 trillion if based on constant currency. On the other hand, Andrew Bartels, an analyst at Forrester, predicts a lower growth rate at 3.6 percent. However, in terms of US currency, Bartels expects a 1.3 percent growth and IDC forecasts a four percent growth.

IDC analysts and Forrester’s Bartels may disagree on certain aspects, but both sides agree that global economic uncertainties and better-than-expected strength of the US dollar against other major currencies are hampering the growth of IT spending.
In a recent blog entry, Bartels wrote that the 2012 forecasts for the IT market remain glum and that a 3-4 percent growth is mediocre. Also, global economic growth needs to improve before any strong activity in tech markets can be seen. Forrester said last January that business and government IT spending would increase 5.4 percent in US dollars.

Bartels noted that other emerging market regions such as India and China are also experiencing a slowdown in economic growth.


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