IT spending to slowdown significantly

New Delhi: Worldwide spending on information technology will slow
significantly in 2009 as a direct result of the global financial crisis that
began in September 2008. According to a newly revised forecast from IDC,
worldwide IT spending will grow 2.6 percent YoY in 2009, down from IDC's
pre-crisis forecast of 5.9 percent growth. In US, IT spending growth is expected
to be 0.9 percent in 2009, much lower than the 4.2 percent growth forecast in
August.

"Although all the economic forecasts went from up slightly to down
drastically in a matter of days, the good news is that IT is in a better
position than ever to resist the downward pull of a slowing economy," said John
Gantz, Chief Research Officer at IDC. "Technology is already deeply embedded in
many mission-critical operations and remains critical to achieving further
efficiency and productivity gains. As a result, IDC expects worldwide IT
spending will continue to grow in 2009, albeit at a slower pace," he
substantiated.

On a regional basis, spending growth in Japan, Western Europe, and US will
hover around one percent in 2009. In contrast, the emerging economies of Central
and Eastern Europe, the Middle East and Africa, and Latin America will continue
to experience healthy growth, but at levels notably lower than the double-digit
gains previously forecast. On a sector basis, software and services will enjoy
solid growth while hardware spending, with the exception of storage, is expected
to decline in 2009.

Looking beyond 2009, IDC expects IT spending to make a full recovery by the
end of the forecast period with growth rates approaching 6.0 percent in 2012.
Despite these gains, IDC estimates more than $300 billion industry revenues
would be lost due to slower spending over the next four years.

"Although the revised forecast and the downside scenario both reflect a grim
outlook for global economic growth over the next several years, IT spending
actually fares well when compared to the previous downturn after the 9/11
incident," said Stephen Minton, VP, Worldwide IT Markets and Strategies at IDC.