Tech Spending Remains Strong, Despite Economic Volatility: IDC
Businesses continued to invest in infrastructure upgrades, along with new software applications and mobile devices, including tablets.IT spending increased by 5 percent at constant currency in 2011, despite the worsening economic situation in Western Europe and volatility in other regions, according to the IDC Worldwide Black Book. Emerging markets continued to lead the way, with tech spending in the BRIC countries (Brazil, Russia, India and China) enjoying another year of double-digit growth. Strong demand for mobile devices and software across most regions ensured a positive finish to the year, despite the impact of the hard disk drive (HDD) shortage on PC markets. In U.S. dollar terms, the IT industry grew by almost 9 percent in 2011, but the report warned year-to-year comparisons could be difficult for U.S.-based IT vendors this year if currency conditions are less favorable. In constant currency, IDC projects another year of 5 percent growth for worldwide IT spending in 2012. Hardware and software spending are each forecast to increase by 6 percent (in constant currency), with 4 percent growth in IT services.
Strongest growth in 2011 came from smartphones (+46 percent), software (+6 percent) and disk storage systems (+6 percent). Businesses continued to invest in infrastructure upgrades, along with new software applications and mobile devices (including tablets). IDC said these positive trends are expected to continue in 2012, when enterprise spending on network equipment will also accelerate as many organizations invest in network upgrades to cope with the continuing increase in digital information, which will meanwhile ensure another positive year for the storage market. By the end of 2012, the PC industry will also return to positive growth, the report noted.