Monday, August 18, 2008

Worldwide IT Spending On Pace to Surpass $3.4 Trillion in 2008

Despite current economic concerns, worldwide IT spending will exceed $3.4 trillion in 2008, an increase of 8 percent from 2007 spending, according to Gartner, Inc. Analysts said much of this growth is based on the decline in the U.S. dollar. The estimated worldwide IT spending growth expressed in constant currency is forecast to be approximately 4.5 percent.

Worldwide software spending is on pace for the strongest growth rate in 2008 at more than 10 percent. IT services spending ranks a close second with more than 9.4 percent growth. Analysts said the IT services sector benefits from the continued innovation in software technology. New software solutions often require labor-based services to implement them.

IT spending is dominated by services rather than products. Together, IT services and telecom services account for 70 percent of total IT market spending. Gartner analyst said the telecom sector has a major effect on overall IT market performance, accounting for almost $2 trillion in 2008.

The main area of hardware growth activity is PCs, which represents 60 percent of total hardware spending. Growth in PCs is stronger than previously expected, with no signs of a slowdown. The U.S. forecast has increased marginally while forecasts elsewhere, particularly Asia/Pacific and Western Europe, have increased significantly.

More information on the service and support industry can be found at www.supportindustry.com

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