IT spending continues to rise in the emerging regions of Asia/Pacific, Latin America, the Middle East and Africa, and Eastern Europe at a pace far outstripping that of the industrialized world, according to Gartner, Inc. These emerging regions will generate IT spending of $1.1 trillion in 2008, and will grow to $1.3 trillion in 2011, becoming a major force of IT growth worldwide.
The compound annual growth rate (CAGR) for IT spending in emerging regions for 2006 through 2011 will be 8.5 percent versus 4.3 percent for mature markets. Gartner predicts that IT will become more of a catalyst for gross domestic product (GDP) increases in the years to come via more-efficient private organizations and competitiveness among countries.
Brazil, Russia, India and China (BRIC) will reinforce their role as the driving forces for other emerging IT countries. BRIC will represent about 39 percent of all emerging markets’ GDP in 2011.
Asia/Pacific
Gartner projects that IT spending for Asia/Pacific will reach $590 billion in 2011, up from $447 billion in 2007. This region continues along its strong IT adoption path, with China leading and India rapidly moving forward. China is substantially driving growth in other emerging IT markets such as Latin America and Africa, via imports and direct and portfolio investments. This creates increased opportunities for IT providers given the needs of local companies immersed in the supply chain with China.
Latin America
Latin America IT spending is forecast to reach $279 billion in 2011, up from $210 billion in 2007. Latin America is the second-largest emerging region in IT spending, with rapidly maturing IT segments, such as telecommunications. IT expansion is rapidly moving beyond Tier 1 cities in many Latin American countries, with consumer and professional market segments in high demand of IT products and services.
Africa and the Middle East
The forecast for 2011 IT spending in Africa and the Middle East is $259 billion, up from $182 billion in 2007. Africa and the Middle East are strongly advancing in all IT areas and are narrowing the gap in IT spending with Latin America. The large size of the region, with its relatively lower IT penetration and its engagement in major telecommunication deployments, is making a strong IT trend. This region shows a forecast CAGR from 2006 through 2011 of 77 percent, which is the strongest of all the emerging regions.
Eastern Europe
IT spending for Eastern Europe is forecast to reach $155 billion in 2011, up from $125 billion in 2007. Eastern Europe's growth and dollar transactions are lower than in other emerging regions, as the region is the lowest in population among the four emerging regions. Russia is the largest IT economy in this region, but shows the lowest real GDP among the largest emerging countries, partially because of existing infrastructure. It faces challenges in modernizing business practices, expanding its small business base and diversifying to beyond oil, gas and minerals, which present large IT opportunities for IT providers.
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