Gartner: Still No Economic Recovery for IT Spending, Sales

By Jessica Davis  |  Print this article Print


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Gartner says that while recent signs show stabilization that could lead to an economic recovery, the market research firm is revising its forecast for IT sales and IT spending in 2009 downward again to a 6 percent decline. Forrester also recently adjusted its forecast for IT spending downward.

Gartner is now forecasting a 6 percent decline in IT spending for 2009, representing a more significant decline than the market research firm’s previous forecast of a 3.8 percent decline.

Gartner says that all four major segments of IT spending will experience declines—hardware, software, IT services and telecommunications.

"While the global economic downturn shows signs of easing, this year IT budgets are still being cut and consumers will need a lot more persuading before they can feel confident enough to loosen their purse strings," says Richard Gordon, research vice president and head of global forecasting at Gartner, in a prepared statement.

Gordon goes on to say that Gartner’s revised forecast represents only minor downward revisions, noting that the forecasted decline in spending growth for hardware and software this year has almost stabilized.

"However, the full impact of the global recession on the IT services and telecommunications sectors is still emerging, and forecast growth in these areas has been further reduced significantly," Gordon says. "Moreover, the rise in the value of the U.S. dollar against most currencies in recent months will have a material downward impact on 2009 IT spending growth."

Gartner says the computing hardware segment will show the steepest decline in 2009, with spending to fall by 16.3 percent. Software will fare the best, with a decrease in spending of only 1.6 percent.

IT services sales will fall by 5.6 percent and telecom will fall by 4.6 percent, according to Gartner.

Forrester also recently revised its forecast for total global sales of IT products and services downward, projecting a decline of 10.6 percent for 2009, compared with a previous forecast of just 3 percent.


Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com

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