Higher Spending, Lower PC Sales Expected by Forrester, Gartner

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.

CIO Insight Staff
CIO Insight Staff
CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need network monitoring technology and solutions to maintain regulatory compliance for their teams and organizations.

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