IDC looks forward to 6.3 per cent increase
Industry analyst IDC predicted yesterday that worldwide IT spending will increase by 6.3 per cent in 2006.
The boost is attributed to economic stability in Europe, Japan and the US combined with continued robust growth in emerging markets.
IDC expects growth to be strongest in the software market, which will improve by seven per cent, while hardware and services are both expected to post overall growth of six per cent this year.
"Last year's intensifying infrastructure upgrade cycle drove IT spending to its fastest rate of growth since 2000," said Stephen Minton, vice president of IDC Worldwide IT Markets.
"Buyer activity really picked up in the second half of the year, contributing to improved margins and revenue for systems vendors and worldwide IT spending growth of 6.9 per cent for 2005."
Juan Orozco, programme manager for IT markets and strategies at IDC, added that the upgrade cycle is expected to weaken somewhat, leading to slightly lower overall growth in 2006.
"There will be greater momentum, however, in project-based spending and key application areas, including business intelligence and content management, as enterprises return to a focus on the front-end strategic importance of technology," he said.
In the US, overall growth in 2006 is forecasted at 5.8 per cent, a slight decline from the 6.4 per cent expansion of 2005.
Strongest growth will be in network equipment, outsourcing services and system infrastructure software, including security tools.
Elsewhere, improving economic conditions are contributing to an enhanced outlook for IT spending in Western Europe where overall IT growth will reach six per cent this year, IDC said.
Asia Pacific, excluding Japan, will enjoy nine per cent growth in 2006, led by double digit spending gains in China with 14 per cent and India with 21 per cent.
"The global economy will remain stable and robust, with marginal changes in growth compared to 2005," said Anna Toncheva, programme manager and economist for IT markets and strategies at IDC.
"Although the engines of acceleration will rotate towards Japan and Europe, China and the US will remain at the helm.
"Given the increased focus on productivity and innovation during the current capital expenditure cycle, IT investments will dominate replacement spending in gross investment in the developed economies."
Industry analyst IDC predicted yesterday that worldwide IT spending will increase by 6.3 per cent in 2006.
The boost is attributed to economic stability in Europe, Japan and the US combined with continued robust growth in emerging markets.
IDC expects growth to be strongest in the software market, which will improve by seven per cent, while hardware and services are both expected to post overall growth of six per cent this year.
"Last year's intensifying infrastructure upgrade cycle drove IT spending to its fastest rate of growth since 2000," said Stephen Minton, vice president of IDC Worldwide IT Markets.
"Buyer activity really picked up in the second half of the year, contributing to improved margins and revenue for systems vendors and worldwide IT spending growth of 6.9 per cent for 2005."
Juan Orozco, programme manager for IT markets and strategies at IDC, added that the upgrade cycle is expected to weaken somewhat, leading to slightly lower overall growth in 2006.
"There will be greater momentum, however, in project-based spending and key application areas, including business intelligence and content management, as enterprises return to a focus on the front-end strategic importance of technology," he said.
In the US, overall growth in 2006 is forecasted at 5.8 per cent, a slight decline from the 6.4 per cent expansion of 2005.
Strongest growth will be in network equipment, outsourcing services and system infrastructure software, including security tools.
Elsewhere, improving economic conditions are contributing to an enhanced outlook for IT spending in Western Europe where overall IT growth will reach six per cent this year, IDC said.
Asia Pacific, excluding Japan, will enjoy nine per cent growth in 2006, led by double digit spending gains in China with 14 per cent and India with 21 per cent.
"The global economy will remain stable and robust, with marginal changes in growth compared to 2005," said Anna Toncheva, programme manager and economist for IT markets and strategies at IDC.
"Although the engines of acceleration will rotate towards Japan and Europe, China and the US will remain at the helm.
"Given the increased focus on productivity and innovation during the current capital expenditure cycle, IT investments will dominate replacement spending in gross investment in the developed economies."
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