Global IT Spending Remains Subdued, IDC Predicts Recovery in 2002
FRAMINGHAM, MA – JULY 18, 2001 – The ill effects of a slowing U.S. economy on IT spending has crept across the border into Canada, and there are signs of a possible slowdown in Europe and Asia. However, according to IDC, regions outside of North America – although susceptible – have remained relatively immune to the worst of the U.S. and Canada’s economic hardships. For 2001, worldwide IT spending growth continues to hover around the 9% mark.
"As the United States remains the largest single portion of the worldwide IT market, the continued impact of a slowing economy will make itself felt on the total worldwide market," said Stephen Minton, program manager for IDC’s Worldwide IT Markets and Strategies program. "However, current forecasts do not point to a worldwide slowdown on the same scale as North America. While there is undoubtedly a decline in the growth of spending in 2001 compared to 2000, this is expected to be less severe in international markets than the U.S. slowdown."
According to IDC, IT spending will remain steady in Western Europe, increasing 11% annually from 2001 to 2005. The software market will shoulder much of the growth in this region, with software spending expected to increase 15% in 2001.
Total IT spending growth in Asia/Pacific will be a relatively subdued 8% in 2001; however, the hardware and services markets will rebound and growth will recover to 13% in 2002. "This recovery is based not only on improving economic conditions, but also on a rapid Internet roll-out,” Minton said. “By 2002, we also expect to see some recovery in North America."
IT spending in the emerging markets looks promising. According to IDC, IT spending in Latin America, Eastern Europe, and Middle East/Africa will increase 11%, 12%, and 15%, respectively, in 2001.
IDC’s report Worldwide IT Spending Patterns: The Worldwide Black Book, 2001 (IDC #B24897) presents the latest comprehensive view of the IT market. Research results include actual spending data for the previous historical year, 2000, as well as forecast spending for 2001-2005 in all major product and service categories across 52 countries. To purchase this report, contact Cheryl Toffel at 1-800-343-4952 extension 4389 or at email@example.com.
IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.
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