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IT spending growth expected to slow next year

Posted on Wednesday, November 19 2008 @ 08:15:41 CET by

IDC analysts expect IT spending will slow down sharply over the next quarter and into 2009. The research firm adjusted its 2009 growth target from 5.9 percent to 2.6 percent. Hardware spending, except for storage, will decline next year, while computer software and services should see solid growth over 2009, IDC predicts.
The global economic crisis will lead to consumers spending less money during this holiday shopping season, with the United States, Japan and Western Europe suffering the most. On a domestic scale, Silicon Valley will be hardest hit, as the region has the highest concentration of high-tech jobs in the United States.

Prior to the economic chaos that came full circle in September, Goldman Sachs & Co. predicted IT job cuts in 2009, claiming both contractors and full-term employees would suffer because of the economy.

IDC originally predicted IT spending would grow 5.9 percent in 2009, but the latest report indicates just 2.6 percent growth.



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