IT spending could total more than $2 trillion in 2010, according to research firm Gartner. While the banking and financial industries are leading the way, government agencies and health care providers are also expected to boost their IT this year. However, the possibility of a "double dip" recession still looms.
The banking and financial industries, along with health
and large government
, are helping to push IT spending past the $2 trillion mark this
year, according to research firm Gartner.
For 2010, Garter
predicting that IT spending will total $2.4 trillion, a 4.1 percent increase
from 2009, when enterprises and small businesses pulled back on their hardware
and software purchases due to the U.S.
recession and the overall global economy.
"2010 will see IT spending in all major industries returning to growth,
although that growth will vary by individual sector," Gartner analyst
Kenneth Brant wrote in a May 18 report. However, the report did not specify if
businesses and governments were spending more on IT hardware, software or services.
The latest projection from Gartner
seems to validate the results coming from other studies
that find the U.S.
tech industry is poised for growth after a nearly two-year downturn. Research
firms have found that consumer spending on electronics
has increased in
just the past few months, which has boosted
the outlook for the semiconductor and PC vendors
The quarterly reports that have flooded in during the past few weeks have
also shown that businesses and consumers have begun buying hardware and
software again. Intel
and IBM-all tech bellwethers-reported solid
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On the same day Gartner posted its latest report, Hewlett-Packard reported
that its second-quarter profits increased 28 percent thanks to healthy PC
However, while the Gartner report recommends that IT vendors and service
providers take advantage of the projected 4 percent growth in spending this
year, there is the possibility the global economy could falter again, with the U.S.
economy experiencing a "double-dip" recession.
"However, we recommend that they continue to promote the value of
solutions that deliver -cost optimization' in 2010 and 2011, which we believe
will be a persistent value for IT buyers even as markets return to
growth," Brant wrote.
Of all the different vertical industries Gartner is tracking, government
agencies seemed poised to spend the most on IT in 2010. This year, spending by U.S.
and internal government is set to increase 6.2 percent, from $234.2 billion in
2009 to $248.7 billion in 2010.
Separately, Gartner sees local and regional government agencies increasing
their spending by 4.3 percent.
The banking and financial industries are looking to increase their IT
spending by about 4.6 percent this year for a projected total of $396.9
are spending a more modest $88.6 billion in 2010, a 2.9
percent increase from last year.
Other markets that are looking to increase their IT spending in 2010 include
utilities, education institutes, retail, manufacturing and the communications