The global economy is still in growth mode, but the rate of expansion is just not as good as economists and researchers would like, according to a recent research report from Gartner Inc. showing a tepid 3 percent rise in projected IT spending for 2012.
In the report, Gartner said it expects worldwide spending on computers, information technology equipment, enterprise software, and services will rise to $3.63 trillion in 2012, up from $3.52 trillion in the preceding year when the market grew about 8 percent from 2010. Of the five sectors computed by Gartner, only one is forecast to record double-digit gains, while all the others are likely to post anemic results.
Demand for telecom equipment, Gartner said, will increase in 2012 to $377 billion, up a torrid 10.8 percent from $340 billion in 2011. That growth rate pales beside the 17.5 percent increase recorded in 2011 over the prior year, but it still leaves the sector well ahead of the remaining four segments. Sales in the telecom services segment are seen barely rising to $1.69 trillion from $1.66 trillion, up 1.4 percent. The remaining three sectors aren't that much better: sales in IT services will grow 2.3 percent to $864 billion from $845 billion; computing hardware up 3.4 percent to $420 billion from $404 billion; and enterprise software up 4.3 percent to $281 billion from $269 billion.
"While the challenges facing global economic growth persist -- the eurozone crisis, weaker U.S. recovery, a slowdown in China -- the outlook has at least stabilized," said Richard Gordon, head of research at Gartner, in the report. "There has been little change in either business confidence or consumer sentiment in the past quarter, so the short-term outlook is for continued caution in IT spending."
With only about six months left to the end of the year, it is likely the Gartner numbers will hold up fairly well for 2012. Next year may be a completely different story. The research company is predicting an improvement for 2013 with growth for all IT spending expected to reach $3.79 trillion, up 4.4 percent from this year. However, these numbers may change dramatically depending upon the direction of the global economy and the comfort level enterprise executives have with their operations.
Well, I hope so, for both workers and companies. Quite hard to say it right now, even indicators from Gartner are telling about something very promising. Maybe the positive ramp next year will be various and depending from country to country.
The market isn't shrinking but the growth is slowing. I was actually surpised demand is as strong as it is considering it's half of the year already and the global economy remains weak. I believe next year's performance will be strong.
It sounds good Bolaji, speaking for myself it seems there are still strategies to be agreed with real things. In fact several are sustaining "digital agenda" as one of the best way for recovery economy, but investments in the sector, as reported within your article, are still facing with a flat condition. Hope something will happen soon for boosting again.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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