Global IT spending to grow 4-5% in 2004: Gartner
By Dawn Teo
SINGAPORE : Tech research firm Gartner says global IT spending is likely to pick up in 2004 after staying largely flat this year.
It is predicting IT spending will grow 4 to 5 percent to over US$2 trillion next year, driven by government and private sector projects.
But it is also warning of more consolidation in the industry.
Remember Y2K -- that much feared computer bug that sent many companies scrambling to upgrade their IT systems?
Since that shopping spree, businesses have suffered the dotcom bust and an economic slowdown.
So they have have tightened their wallets and even stopped spending on technology.
Now that conditions are picking up, Gartner says the market is making a slow but steady recovery.
"A lot of people on a global basis did the Y2K upgrade. They are now getting to a stage where they are now on a growth cycle, they need to start to utilise their technology, utilise their businesses and so they need to refresh that to take them to the next level," said Ian Bertram, vice president at Gartner Asia Pacific.
Despite the brighter outlook, Gartner warns that as many as half of the world's tech firms will not be around by 2005.
It says they will either be eaten up by bigger rivals, bought over by companies looking to tap niche markets or go under simply because there are just too many of them selling the same thing. - CNA
Channel NewsAsia
SINGAPORE : Tech research firm Gartner says global IT spending is likely to pick up in 2004 after staying largely flat this year.
It is predicting IT spending will grow 4 to 5 percent to over US$2 trillion next year, driven by government and private sector projects.
But it is also warning of more consolidation in the industry.
Remember Y2K -- that much feared computer bug that sent many companies scrambling to upgrade their IT systems?
Since that shopping spree, businesses have suffered the dotcom bust and an economic slowdown.
So they have have tightened their wallets and even stopped spending on technology.
Now that conditions are picking up, Gartner says the market is making a slow but steady recovery.
"A lot of people on a global basis did the Y2K upgrade. They are now getting to a stage where they are now on a growth cycle, they need to start to utilise their technology, utilise their businesses and so they need to refresh that to take them to the next level," said Ian Bertram, vice president at Gartner Asia Pacific.
Despite the brighter outlook, Gartner warns that as many as half of the world's tech firms will not be around by 2005.
It says they will either be eaten up by bigger rivals, bought over by companies looking to tap niche markets or go under simply because there are just too many of them selling the same thing. - CNA
Channel NewsAsia
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