IT Spending: Gartner Sees Growth in 2010 + Beyond

By CIOinsight  |  Posted 08-10-2010

Government, utilities, communications media/services and healthcare are the industry sectors that will experience the greatest increases in IT spending this year, according to Gartner's latest forecast, released August 10, 2010. Worldwide enterprise IT spending across all industry verticals will grow 2.9 percent in 2010 to surpass $2.4 trillion, according to Gartner. Analysts say that all industries are continuing to return to growth after a challenging 2009, when IT spending by vertical market totaled $2.3 trillion, a 5.9 percent decline from 2008.

For 2011, a 3.5% increase in worldwide IT spending is the most likely scenario, according to Kenneth Brant, research director at Gartner. IT solutions that deliver 'cost optimization' will be a priority for enterprises through 2011, even as markets return to growth, says Brant.

The 2.9 percent increase in 2010 IT spending forecast for this year is down from the 4.1 percent jump that the research firm had originally predicted, notes Brant. The possibility exists that there will be zero growth in worldwide enterprise IT spending in 2011, he notes. This is a scenario that "carries a lower probability but a much higher potential impact," according to Brant.

IT Spending by Industry Vertical Market, Worldwide

(Millions of Dollars)

Industry

Total IT Spending 2010

Total IT spending 2009

2009-2010 Percent Change

Banking and Securities

390,488

379,855

2.8

Communications media / services

392,506

378,750

3.6

Education

64,148

62,607

2.5

Healthcare

88,996

86,215

3.2

Insurance

159,926

156,573

2.1

Local and regional government

179,664

176,747

1.7

Manufacturing/natural resources

426,085

415,480

2.6

National/int'l government

244,410

235,086

4.0

Retail

146,239

142,420

2.7

Transportation

105,703

103,689

1.9

Utilities

125,583

119,927

4.7

Wholesale trade

83,315

81,196

2.6

Grand Total

2,407,063

2,338,544

2.9

Source: Gartner, August 2010