IT growth rests on "favourable" US forex rate says Gartner

Global IT spending in 2011 hinges upon a beneficial US dollar exchange rate but comms kit, computing hardware and enterprise software represent the strongest growth prospects for the industry, according to Gartner. The numbers are still being crunched but the market watcher reckons the amount doled

Global IT spending in 2011 hinges upon a beneficial US dollar exchange rate but comms kit, computing hardware and enterprise software represent the strongest growth prospects for the industry, according to Gartner.

The numbers are still being crunched but the market watcher reckons the amount doled out on IT in 2010 grew 5.4% to $3.4trn (£2.2trn) and though it expects similar rates for this year, up 5.1% to $3.6trn (£2.32trn), the prediction was made with some caveats.

"Aided by favourable US dollar exchange rates, global IT spending growth is expected to exceed 5% in 2010, but a similar level of growth in 2011 - while forecast - is far from certain, given continued macroeconomic uncertainty" said Gartner research director Richard Gordon.

"While the global economic situation is improving, the recovery is slow and hampered by a sluggish growth outlook in the important mature economies of the US and Western Europe," he said.

Gordon also voiced questions over the ability of emerging economies to sustain growth rates at the same highs as in recent years.

The telecoms equipment market is forecast to rise 9.1% this year to $465bn though growth in the vast telecom services sector is set to be more modest at 3.4% to $1.6trn.

Gartner expects the computing hardware and enterprise software markets to both expand by 7.5% to $391bn and $254bn respectively, IT services is predicted to grow 4.6% to $718bn. 

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