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IDC Cautious On IT Spending

IDC has released a report describing current trends in IT spending on software, services, and hardware. The analyst group predicts slower growth, partially due to the US economic slowdown.

The report, “Worldwide IT Spending Patterns: The Worldwide Black Book” says that stateside spending growth will drop to 7% this year from 9% this year. IDC believes that this slowing is in part due to the faltering US economy. It notes that while hardware growth has dipped considerably, it expects spending on software and services to grow at about the same rate.

Globally, IDC is more optimistic. It believes that Western Europe will continue to buy IT products at a growing rate, while it catches up to the US in terms of Internet infrastructure and penetration.

IDC sees the brightest spots in the emerging markets of Latin America, the Middle East, Africa, and Asia. It points out that it expects India alone to spend 29% more on IT than it did last year.

Japan was the darkest spot in the report. Like the United States, Japan is experiencing its own economic slump. IDC expects IT spending to grow there at less than 7%.

Christopher McConnell

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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