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Higher Spending, Lower PC Sales Expected by Forrester, Gartner

By CIOinsight  |  Posted 01-11-2011 Print
Despite projected increases in IT spending in 2011 because of strong growth in software and mobile devices, hardware sales are expected to decline, according to research firms Gartner and Forrester.

Global IT spending is expected to grow overall in 2011, according to two different analyst reports. However, both Gartner and Forrester analysts said spending in the PC segment will be impacted the increasing popularity of tablets and smartphones.

Global IT spending will grow 7.1 percent to $1.7 trillion in 2011, market research firm Forrester Research said in its latest forecast on Jan. 10. While the 2011 global tech market may "look similar" to the 7.2 percent market growth in 2010, the project growth for 2011 is "more impressive," Andrew Bartels, Forrester Research vice-president and principal analyst, wrote on his blog.

IT capital investment as a whole bounced back in 2010 from the 2008-2009 recession and most of the 2010 growth was driven in part by deferred demand for replacement equipment, according to Bartels. In 2011, growth will reflect "new demand for IT goods and services, not pent-up demand from prior years," he said. The growth rate for 2010 looks good because it was compared against weak 2009 spending, while 2011 will be "measured off a stronger base," he said.

IT spending in 2010 also generally focused on computer hardware, while 2011 will see an increase in companies buying software, IT consulting and system integration services, Bartels said. Software and services are expected to account for 44 percent of the global IT market, and close to 50 percent in the United States, according to the Forrester analysis.

Since software and services tend to be part of large projects that take months to complete, Forrester's analysts also forecasted that these two segments will influence strong growth in 2012.

For more, read the eWeek article: Forrester, Gartner Forecast Higher IT Spending but Lower PC Sales in 2011.


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