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Sliding global economic growth, euro zone crisis and devastating floods in Thailand (which impacted hard disk drive production) are going to take a toll on global IT spending in 2012.
According to IT research and consulting firm Gartner, this year is going to witness tardier growth on IT spending than what was forecast earlier.
Pares growth forecast
Garner has revised downwards its growth forecast figure for global IT spending in 2012 from 4.6 per cent to 3.7 per cent at $3.8 trillion over $3.7 trillion in 2011. In 2011, IT spending grew 6.9 per cent from 2010 levels.
"We estimate the supply of hard drives will be reduced by as much as 25 per cent (and possibly more) during the next six to nine months,” Gartner said.
It has reduced its shipment forecast for PCs, which has impacted the short-term outlook for the hardware sector. The impact of HDD supply constraints on HDD and PC shipments in the first half of the year compound the cautious environment for hardware spending in general.
All four major technology sectors computing hardware, enterprise software, IT services and telecommunications equipment and services are expected to experience slower spending growth in 2012 than previously forecast, Mr Richard Gordon, Vice-President (Research) at Gartner, said in the Outlook for 2012.
Thailand floods
“The Thailand floods, that left one-third of the country under water, are having serious implications for businesses worldwide, particularly with computer and storage purchases. Thailand has been a major hub for hard-drive manufacturing, both for finished goods and components,” Mr Gordon said.
Rebuilding the destroyed manufacturing facilities will also take time and the effects of this will continue to ripple throughout 2012 and very likely into 2013, the research firm felt.
While maintaining that large-scale PC makers could have fewer problems than others, there is no company that will be wholly immune.
Telecom equipment spending
Telecom equipment spending is projected to show the strongest growth, with revenue increasing 6.9 percent in 2012, followed by the enterprise software market, which will grow 6.4 per cent.
“With the euro zone crisis causing uncertainty for both businesses and consumers in Western Europe, Gartner has adjusted our forecast, and we expect IT spending in Western Europe to decline 0.7 per cent in 2012, Mr Gordon said.
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