Researcher Forecasts 4 Percent Uptick in Worldwide Enterprise IT Spending
Gartner findings point to enterprise IT spending growth rising to $2.4 trillion across vertical segments but advises caution in uncertain economic environment.
Researcher Gartner Inc. said that it expects 2010 worldwide enterprise IT spending across vertical markets, ranging from banking, communications, healthcare, government and education, to exceed $2.4 trillion, a 4.1 percent jump from last year, signaling a loosening of knotted corporate budgets.
Enterprise vertical market IT spending in 2009 totaled $2.3 trillion, a steep 5.6 percent decline from 2008, the researcher said.
While Gartner predicted a rise in IT spending rates in all major industries--from a low of 2.8 percent in health care to a high of 6.2 percent in national and international governmentit, nevertheless, cautioned technology and service providers to prepare contingency plans to offset the risk of slower than expected growth or another recession.
"Vendors should convert to a growth market strategy and allocate business development resources to maximize long-term industry growth opportunities," said Kenneth Brant, Gartner research director.
"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," he said.
Brant said that IT spending growth will vary by individual sector, rebounding more strongly in some verticals than others.
"Among the two largest industry segments, IT spending in the banking and securities market will rebound to $396.9 billion in 2010, a 4.6 percent increase from 2009, whereas IT spending will recover more slowly in manufacturing and natural resources during 2010, growing to $428.9 billion, a 3.1 percent increase from 2009, he said.
Additional growth markets pegged by Gartner include communications at $394 million or a 4.4 percent increase, education at $63.9 million (4.1 percent), health care at $88.6 million (2.8 percent), insurance at $157.7 million (3.9 percent), local/regional government at $184.5 million (4.3 percent), national/international government at $248.7 million (6.2 percent), retail at $149.2 million (4.7 percent), transportation at $106.4 million (2.9 percent), utilities at $124.5 million (3.4 percent) and wholesale trade at $84 million (4.1 percent).
Gartner said that it expects banking and securities, with a compound annual growth rate of 5.2 percent, and communications, media and services, with a CAGR of 4.6 percent, will post the strongest growth ratios through 2014.
The researcher said that it figures manufacturing and natural resources at 3.0 percent, and wholesale trade, at 3.1 percent, will record the weakest sector growth through the same period.