The return to growth is a promising sign for the IT industry, after spending declined 5.6% between 2008 and 2009.
But even with budgets increasing, IT buyers are focusing on products that reduce long-term technology costs. “2010 will see IT spending in all major industries returning to growth, although that growth will vary by individual sector,” Gartner research director Kenneth Brant said in an announcement. “National and international government will show the strongest growth in 2010, as IT spending is forecast to grow 6.2 percent worldwide.”
Although Gartner's current projection seems to be reason for optimism, the research firm said vendors should prepare contingencies in case technology spending growth slows down or a so-called “double dip” recession occurs, given remaining economic uncertainties.
For now, though, Gartner says overall IT spending should increase from $2.33 trillion in 2009 to $2.43 trillion in 2010. The numbers include 12 vertical industry markets, including banking, media, education, healthcare, insurance, national government, local government, manufacturing, retail, transportation, utilities and wholesale trade.
Above-average IT spending growth is being predicted in banking and securities, which should see a 4.6% increase to $397 billion, and in retail, which should see a 4.7% increase to $149 billion.
The slowest growth is expected in the healt care, manufacturing and natural resources, and transportation industries, which will see growth between 2.8% and 3.1%.