Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Networking
    • PC Hardware

    IDC Slashes 2009 IT Spending Forecast, Citing Financial Crisis, Consumer Spending

    By
    Scott Ferguson
    -
    November 12, 2008
    Share
    Facebook
    Twitter
    Linkedin

      As the financial crisis grows and consumers spend less as the holiday shopping season approaches, IDC has slashed its IT spending forecast for 2009, with the United States, Western Europe and Japan taking the biggest hit.

      In a report released Nov. 12, IDC predicts that worldwide spending on IT hardware, software and services will grow only 2.6 percent year-over-year in 2009. The research company originally predicted IT spending would grow 5.9 percent in the same period.

      The IDC report also predicted that IT spending in the United States, Western Europe and Japan will grow less than 1 percent in 2009 as these three major economic regions sort out the implications of the financial crisis on Wall Street and in other stock markets. In the United States, IDC predicted that IT spending will only grow 0.9 percent, which is much lower than the 4.2 percent growth IDC called for in August.

      While these numbers seem fairly glum, IDC said it believes the IT industry is more resistant to market changes than it was just a few years ago. The fact that there is some growth in the forecast shows how important IT has become to nearly every business.

      “Technology is already deeply embedded in many mission-critical operations and remains critical to achieving further efficiency and productivity gains,” John Gantz, an IDC analyst, wrote in the report. “As a result, IDC expects worldwide IT spending will continue to grow in 2009, albeit at a slower pace.”

      Still, IDC is predicting that IT spending will not return to a 6 percent growth period until 2012, and in the next three years, more than $300 billion in IT industry revenues will be lost.

      IDC is not alone in reducing its IT spending numbers. In September, Gartner and Forrester Research produced new reports that showed IT spending slumping as the financial crisis continues. Both Gartner and Forrester reduced their IT growth forecasts to about 2 percent in 2009.

      The IT industry should have a clearer indication of the impact of the financial crisis when two bellwethers report financial earnings later in November: Dell is slated to release new quarterly numbers Nov. 20 and Hewlett-Packard reports its numbers Nov. 24.

      Dell has already signaled that the worldwide economy has begun to make the company look at additional costs savings. On Nov. 3, CEO Michael Dell wrote an internal company blog post that asked employees to take an unpaid vacation. In addition, he wrote that he would seek additional cost savings by reducing the number of outside companies Dell uses for various projects.

      Avatar
      Scott Ferguson

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×